In Accounting, What Entry Is Made for a Post-Dated Check?


Quick Answer

According to Accounting Coach, post-dated checks are not considered legal currency and should not be entered until the date of the check. Entering the check before its date artificially inflates the company's cash account.

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Full Answer

For example, if a check for $250 is received on the 11th of the month, but is dated for the 16th, entering it on the 11th results in a false cash balance until the 16th, because the check is not a valid form of currency.

On the 16th the cash account is debited for $250 to reflect the increase in cash from the check. The accounts receivable account is credited for $250 to decrease its balance.

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