What is postdating check
What is postdating check - sex chat argently
A postdated check does show the tenant's will to pay, and if the funds are in the account on the date the check is cashed the landlord will receive the money.If the check bounces the landlord may have certain civil remedies to help recuperate the promised funds.
From the perspective of the check issuer, there should be no journal entry to record the reduction in cash until the date listed on the check.However, if the tenant writes the check with the intent to have funds in the account on the date that the check is postdated for, there is no intent to commit fraud or pass a worthless check and therefore no illegal activity has technically taken place.Accepting a check that is postdated may provide the tenant with a legal defense that negates criminal intent even if the check doesn't clear.A Canadian bank, for example, is not supposed to process a post-dated cheque and if it does so by mistake, the cheque writer may ask their bank to correct the error.In the United States and the UK, post-dated cheques are negotiable instruments and can be drawn upon at any time, while in India and Australia post-dated cheques are not payable until the date written on the cheque. (1) Where a cheque, or any indorsement of a cheque, is dated, the date shall, unless the contrary is proved, be presumed to be the day on which the cheque was drawn or the indorsement made, as the case may be.For example, ABC International receives a 0 check payment from a customer for an unpaid invoice on April 30. ABC should not record the cash receipt until May 15, nor should it reduce the related accounts receivable balance until May 15.
Thus, the post dated check has no impact on the financial statements of ABC International until the date listed on the check.As a landlord, collecting a check that has been postdated could be dangerous.The tenant may know that he or she will not have the money in time, the check could have a stop-payment placed on it, or the check may bounce.Mary Lamphere writes travel, real estate, wellness, health and business content for a variety of online portals.Her work has been featured by a number professional websites since she started writing in 2005.From the perspective of the recipient, there should be no entry to record the increase in cash until the date listed on the check.