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Fd entry

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This query is : Resolved

DEVENDRASINH RAVALJI (Querist)

15 March 2016 if i put a FD prin amt 5000 int.rate 9% p.a.maturity period 3 years.
so how can i entered 1st year entry, 2nd year entry, and 3rd years entry

at present i practice
Dr. FD , Cr. bank
Dr. Accrued INT (Bal.Sheet) , Cr. Int. (p&l) (Which Reverse in Next Year)
and when matured take actual int. received int. taken in P&L
so we can track Prin.amt fd every time with pysically FDR.

pLease Helap me

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

15 March 2016 If FD booked Based on Number Every year you can credit interest (P& L) Debit Particular FD or as you have mentioned you can pass by Debiting Accrued Interest . If you debit Interest accrued directly to FD you will be knowing approximate value of FD . on Maturity adjust un adjusted interest to P& L account Credit FD if crediting interest to accrued interest than FD & Accrued Interest should be adjusted with balance interest on Maturity can be claimed in P& L A/c.

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