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Are Post Dated Checks considered notes receivable collected by the bank?
Wiki User
∙ 12y ago
Post dating a check does not mean that it won't be cashed before that date. You may need to notify your bank and see if they will watch for and not cash a post dated check. Any valid signed check can be cashed no matter the date. How soon the funds are available to use in your account once you deposit it can also vary per bank from right away to two or more days depending on the check amount and where the check came from. Any check, post dated or not, could come back on you if the account it is coming from is short of funds. You might deposit it one day and have money added to your account, only to find out a few days later that the deposited check was returned, and might leave you short. Rule of thumb for large deposit amounts is wait 10 business days from the day you deposit it to make sure it's not being returned, or call the bank the check came from to see if it has cleared.
Wiki User
∙ 12y ago
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What are the laws regarding post dated checks?
In the United States, post-dated checks are generally legal, but banks are not required to honor them. If a post-dated check is deposited before the date written on it, the bank may process it unless the account holder has provided the bank with written notice not to do so. It is recommended to communicate with the payee and your bank to ensure the check is deposited on the intended date.
How do you record in your company's books the dated and post-dated checks received from clients?
Postdated checks. If a customer gives you postdated checks, treat them as a note receivable. In other words, debit it to Notes Receivable, not to Cash. On the date written on the check, deposit it to your firm's account, debiting Cash and crediting Notes Receivable. Returned checks. When the bank notifies you that it is returning a customer's check for NSF (not sufficient funds), debit the customer's account immediately-even if you plan to redeposit the check the same day. For good internal controls, instruct your bank to address all returned checks to someone other than you-possibly the owner or a senior manager. This can protect you if an employee tries to use fictitious checks to cover temporary shortages. http://www.aipb.org/newsletter/bookkeeping_tips/pdfs/BookkeepingTips_2-38.pdf
What does the name emi mean?
Equated Monthly Installments: Hire, purchase, lease, or loan-repayment installments that are constant in amount, and are usually collected in advance as post-dated checks.
What is the journal entry for post dated cheque is received?
debit bankcredit accounts receivable
Are postdated checks illegal?
Are post-dated checks issuing allowed by the State law in Greece or it is forbidden? Tks for the answer. Massimo
Is a post dated check illegal in Florida?
I worked in banking for years, and never heard of post dated checks being illegal.
Could be considered a crime a check given to secure a payday loan?
Checks given for payday loans are generally post dated. This means if the money is not there for the loan to be paid it is considered fraud and a crime. Also if the check is a rubber check or fake.
What is check re discounting?
Check rediscounting is a financial facility wherein post-dated checks are exchanged for cash, on-date checks or any other financial instrument that the client can use immediately. A percentage of the check/s to be rediscounted is deducted (usually 10%. the total percentage amount deducted usually depends on the maturity date of the checks) It can be availed from some financial institutions (i.e. banks) or through informal sectors. Check rediscounting may also be considered a loan, and the amount deducted may be considered interest of said loan. Repayment of said loan is through the post-dated checks issued.
What are the consequences for writing bad checks in pa?
If someone writes 4 bad checks that were post dated what charges would they be facing in this situation.
Can you cash a year old check?
Most checks become stale dated -- which means they cannot be cashed -- after 6 months, though some checks last for a year (business checks). Some checks may have an even shorter life (the check would say "Void after ________"). If your check is stale dated, it is likely your bank will refuse it or, if they accept it, that the drawee bank will return it against your account. You should request a new, currently dated check from the original maker.
What is statute of limitations on stale dated checks?
Actually nothing. It is the responsibility of the person who received the cheque to deposit and encash it before the cheque becomes stale dated.
What is the treatment of post dated checks to bank reconciliation?
debit to cash and credit to accounts receivables
