Query in relation to Demand Draft

In my opinion,

Demand draft received which are to be deposited in the bank shall be included in cash in hand until 

the next working day.  When the draft is deposited in the bank, Bank A/c shall be debited and by

crediting cash in hand. 

I.T. Act doesn't prevent this treatment. Its note-worthy that income should be recognized on accrual or

cash basis, whichever is consistently followed.  In the given circumstance, Income should be

recognised when the demand draft is received.

in the given case we cannot treat a demand draft as cash. that has to be deposited into the bank. then in the books we have record the source of the receipt that all.

No,  Demand Drafts may be treated as Cheques in Hand Rather than cash in Hand.

The accountant will always have a risk of negative cash balance in the cash book and if it remained unoticed the assessee may be penalised for undisclosed income.