A company has to Pay annual rent in 4 equal installments .The company has issued 4 post dated cheques How to account for post dated Cheque?

You create an account "PDC Payable A/c" under current liability.

While paying PDC, pass a Journal entry debiting PDC payable A/c and crediting "Rent Payable A/c"

On the day on the cheque clearance or after Bank reconciliation you have to pass the payment entry debiting the Bank A/c and crediting "PDC Payble A/c"

for cheques the entry will be as Dr prepaid expense Cr bank

You can record each cheque in the starting of each quote s

Hi, *You can record each cheque in the starting of each quater. *dr.rent expenses Cr.bank(xyz) Then reconcile the cheque at bank withdrawal date. For an instant: journal pass on 1 Jan and cheque cash out at 15th Feb...this will help maintain the cashflow too...OR make it Accrued for all 4 quarters...& make reconciliation with bank.. Thankyou

First quarter entries 1-Rent Debit To Rent Payable account credit Rent recorded for First Quarter. 2-Rent Payable account Debit To Bank Account Credit To With holding Tax Payable on Rent account credit first Post Dated cheque issued. Like wise four quarter rent will be recorded and post dated cheques will be issued

To account the postdated cheque, you should record the date of each cheques, then you have to record also the amount and check number of the cheque. After that, the cheques should be deposited to accounts for not longer 3 months.