What is the general Entry of payment through post dated cheque (PDC)?

 

PDC Issued is a current Liablity & PDC received is Current asset,when company issued a Post dated cheque to a Party that time Debit the Party A\\C and Credit to PDC issued A|C and on the cheque date Cr Bank A\\C and Debit PDC A/C.(same goes to PDC received).

At payment:

Transfers in Processing (Debit)

Bank A/C                          (Credit)

THERE ARE TWO SITUATIONS TO RECORD PDC 

1)ONE OFF TRANSACTON EG FOR GOOD PURCHASED 

Dr SUPPLIER ACCOUNT 

Cr PDC 

on clearnce 

Dr PDC

Cr bank

2)Suppose we paid pdc for Rent 

Dr prepaid rent 

Cr PDC payable 

then earch month 

Dr Rent exp 

Cr prepaid rent 

also if cheque cleared 

Dr PDC payable 

cr Bank 

credit bank acccount

Case 1---PDC for purchase Supplier a/c Dr To PDC (Being issued cheques) PDC a/c Dr To Bank (Being cleared cheques) Case 2.....PDC FOR EXPENSES Prepaid rent.....Dr To PDC payable Each month Rent.....Dr To prepaid rent (Being transfer to expenses) Finally cleared PDC payable.....Dr To Bank

Accounts Receivable a/c Dr To Cash a/c

When PDC Issued

Sundry Creditors A/C Dr

To PDC Issued (Accounts Payable)

(being PDC cheque issued to supplier)

 

on maturity 

 PDC issued A/c Dr

To Bank

(being collected by the supplier)

Create PDC issued A/c Under Current Liability While issuing Pdc Cheques supplier Dr (adjust the outstanding bills ) PDC issued A/C Cr (new ref Supplier name /PDC /dt ) at the time of cheque clearance PDC issued A/C DR (adjust against Ref same u mentioned issued time new ref) Bank A/C CR Now liability will decrease in the outstanding payables