Fd treatment in proprietorship firm

This query is : Resolved

sapna agarwal (Querist)
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08 January 2012 Please tell treatment of Fixed deposit in books of accounts in case of proprietorship firm. Would it deducted from capital account or it will be shown on asset side. please tell all journal entries to be passed

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 January 2012 It will be shown in the assets side...

At the time of making an FD...

Fixed Deposit in SBI A/c Dr...

To Bank....

Passing interest entry....

Fixed Deposit in SBI A/c Dr.....
TDS Receivable A/c Dr...(In case TDS Ded.)
To Interest on FD A/c.....

On Maturity...

Bank A/c Dr.....
To Fixed Deposit in SBI A/c....

CA Deepak S

CA Deepak S (Expert)
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09 January 2012 Adding to the above,

In case the bank is not crediting the interest periodically in your account you can show the interest entry as
Interest earned but not due A/c Dr
TDS a/c dr
To Interest received on FD A/c