How to capitalize interest on sb / fd

Dear Friends during the last FY we had made entries like

Bank Ac Dr 25000

interest ac Cr 25000

and FD Ac Dr. 25000

Interst AC Cr 25000

so in this years Income Expenditure statement we showed income of Rs.50000/- earned as interest from Savings and Fixed Deposits, but our head office has asked us to capitalize the revenue earned. What exactly means by capitalization and what entry should i pass now for the whole year i.e journal entry.

Someone please advise.

Capitalise means including it in the value of asset concerned. It seems your HO wants to include interest earned to FD account,however I have no idea how they want to capitalise savings account. I dont think that treatment will be correct. Let more knowledged members also comment for arriving at a conclusion.