What are the consequences of paying post-dated cheques?

This is because there could be possibilities that you may not be able to honour the cheque on the given future date. The possible reason could be expected funds have not come into the bank. On the other side, the recipient may not be aware of this and he may deposit the cheque into bank resulting in a cheque bounce.

How can I recover my money from a bounced cheque?

The only way to recover the money of a dishonoured cheque is by filing a civil case. Dear Questioner, We suggest you file a criminal complaint against that person, who issued the cheque.

How are post-dated cheques treated in accounting?

A post-dated cheque is one that the recipient can encash on a future date. Such cheques are not payable until the date written on the face of the cheque. In the accounting books of both the issuer and the recipient, the transaction will not be recorded until the date provided on the cheque.

Can you cash a post-dated check early?

Can a bank or credit union cash a post-dated check before the date on the check? Yes. Banks and credit unions generally don’t have to wait until the date you put on a check to cash it. However, state law may require the bank or credit union to wait to cash the check if you give it reasonable notice.

Will a post-dated check clear?

Quick answer: Surprisingly, if a deposit is attempted, the post-dated check will go through the clearing process as normal.

How do you record stale dated Cheques?

How do I write off old outstanding checks?

1. Void the check and add the amount to your checkbook balance.
2. Debit the general ledger Cash account for the amount, and credit the account that was originally debited.
3. Remove the check from the bank reconciliation’s list of outstanding checks.

Can we use cheque with old date?

For clearance or deposit, any cheque with a previous date that is not exceeding 3 months may be presented to the bank. Stale cheques are outdated cheques issued to the bank after the date of payment has expired.