PDC Reveivables

Today I have received a PDC cheque from my client, today's date 01/05/2024, cheque is dated 01/08/2024, Please let me know what are the entries I need to make while receipt of the cheque from client and when clearing the cheque on due date

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Quick Summary
This discussion clarifies the correct accounting entries for post-dated cheques (PDCs). When receiving a PDC, no entry should be made until the cheque's due date. Upon receipt, you debit a 'PDC Account' and credit the customer's account. When the cheque clears on its due date, you then debit your 'Bank Account' and credit the 'PDC Account'.

you do not make any entry till 1 August 2024.

PDC A/c Dr. To customer account and cheque clear then Bank account Dr. To PDC A/c.

Dear Vivek,

 

You cannot paas this entry till the date cheque becomes valid. 

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