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Discounting of PDC is also an option for PDC received.
The Cheques are realised on maturity. Before we can accopunt for for our memorandum but in books cannot be incorporated before maturity. As in Gulf cheques are dishonoured frequently.
Need to be taken care of.
It must be pending until the date will be mature or come.
PDC Received is our current asset and PDC Issued is our current liability . When PDC Cheques matured or cashed then reverse entries will have to be made for the PDC received or Issued.After reversal then actual entry will be posted which will hit direct our bank account, if we receive PDC it will increase our bank balance and if we issue then it decreases our bank balance
PDC received is current assets and issued PDC is a current liability if you are working on accrual basis.
