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PDC cheques isssued or received will not consider in the financial statement. Net payable or receivable will be including the value of post dated cheques.
It is on the basis of Prudency as the post dated cheques are not guranteeing the liquidity on maturity date . If these chequs were discounted with the bank the value of the discounted cheques will show as current liability of the reporting company as the company has the liablity to pay the amount to bank if the discounted cheques dishonoured by the issuing bank.
PDC is hand only provides some safeguard against the receivable as the same can be used legally to recover the funds in future - But it should be presented on time or within days from the date of cheque as the staled cheques do not have any legal value.
Post-dated checks play a significant role in modern economies. Similarly to credit cards and bank letters of acceptance, they help an individual or a company receive goods or services and pay for them at a later date. I think the Post-dated checks can protect the real state company in both way in the rental income and that is by take from the customer that PDC checks to guarantee the rent payment and also can the company get benefit to issue these checks in order to get some liquidity from the banks or others.
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