Post Dated Cheques

Question

We have received post dated cheques from one of our customer. I want to discuss the accounting treatment of these cheques. The due date of these cheques will be after my year end. Where should i show these cheques in my balance sheet.

Answer 1

you should not record the cash receipt until date of cheaque, nor should it reduce the related accounts receivable balance until that date. Thus, the post dated check has no impact on the financial statements of yours company until the date listed on the check.