What happens if a Cheque is post-dated?
A “post- dated cheque” is only a bill of exchange when it is written or drawn, it becomes a “cheque” when it is payable on demand. As a bill of exchange a post-dated cheque remains negotiable but it will not become a “cheque” till the date when it becomes “payable on demand”.
Is undelivered check part of cash?
UNDELIVERED OR UNRELEASED CHECKS are the company’s checks drawn and recorded but are not actually issued or delivered to the payees as of the reporting date. COMPANY’S POSTDATED CHECK which has been recorded as issued and delivered to payees before or at the reporting date should be reverted to cash.
What are undelivered checks?
UNDELIVERED CHECKS. – One that is merely drawn and recorded but not given or delivered to the payee before the end of reporting period. – The effect is that there is no actual payment to the payee because of pending delivery.
What is customer post dated check?
A post dated check is a check on which the issuer has stated a date later than the current date. The issuer does this in order to delay payment to the recipient, while the recipient may accept it simply because the check represents a firm date on which it will be able to deposit the check.
Should I accept a post-dated check?
Post-dated checks are perfectly legal. If they weren’t, “pay day” lenders, and other crude forms of credit, couldn’t exist. Only “properly payable” checks are supposed to be cashed by banks. But just about anything with the right signature on it is properly payable, including post-dated and overdrawn checks.
What is the difference between a check that is marked Daif and one that is marked Daud?
However, BPI mistakenly marked the dishonored checks with “drawn against insufficient funds (DAIF), ” instead of “drawn against uncollected deposit (DAUD).” DAUD means that the account has, on its face, sufficient funds but not yet available to the drawer because the deposit, usually a check, had not yet been cleared.