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Post dated cheques recorded as current liability in the balance sheet.
When you issued post dated cheques to the bank against long term loan, the treatment in the books of accounts is
Long Term Loan Dr.
Post Dated Cheques Cr.
when the payment is made at certain term
Post Dated Cheque Dr.
Bank A/C Cr.
Create a Dummy GL of bank account and loan account. post60 PDC cheques in that GL giving debit to the Dummy loan account.
whenever a cheque is encashed, post one entry in original GL accounts. also pass one cheque reversal in both dummy accounts.
To be noted: while preparing financial statements, net off both dummy accounts at grouping level. so they are not reported in any case.
Also to remember; dummy accounts are for reference purpose only, they do not portray any factual accounting transactions.