How to account for Post Dated Checks issued for Prepaid Expenses(e.g. Prepaid Rent): 1. Upon issuance of the check. 2. On the date of the check. 3. At the end of the reporting priod (but before the date of the check and before the the expiry of the prepaid expense)?

Always considered issuing a check is issued legally payable but usual on the check payment

Keep it on a Temporary Payable or PDC A/c and at maturity transfer to Bank A/c or No entries with regard to payment until maturity. However, maintain a spreadsheet separately for PDCs issued.

Kindly pass the necessary Journal Entries in your Books

1.On the date of cheque Issue

Prepaid Expense A/c Dr

  To Post Dated Cheque Issued

2. On the date of maturity of the cheque

Post Dated Cheque Issued A/c Dr

  To Bank

3.On the date of expense due

Expense A/c Dr

 To Prepaid Expense

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