Undeposited Cheque Accounts

[megatron]

Where should be the position of Undeposited Cheques in chart of accounts? I mean in which head I should create this account. (e.g. Bank, A/R or What?)

[sumairalam]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by megatron</i>
<br />Where should be the position of Undeposited Cheqs in chart of accounts? I mean in which head I should create this account. (e.g. Bank, A/R or What?)
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

When receive cheques if you debit the bank then this will come in bank reconciliation , no new account required but if these are post dated cheques then open a new head of account in the name of PDC in your chart of account under Bank and also under creditors.

PDC issued will come under liability and PDC received will come under Assets.