Fixed deposite and tds treatment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2013 can anyone explain fixed deposite and tds with an example .....
my simple ex. suppose i start my b'ness with 100000 cash my entry will be
cash a/c dr 100000
to capital 100000

now suppose i invested rs.50000 in fdr having ROI @ 12% on 1/7/2012
fdr a/c dr 50000
to cash 50000

now come the question of accured interest of 9 month and its treatment

if i dr accured interest than what should i cr...

CA. R. B. SAH

CA. R. B. SAH (Expert)
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04 June 2013 Interest account should be credited

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 June 2013 Accrued Interest Account Dr Rs 4500
To Interest A/c Rs 4500

Here TDS will not be deducted by the bank since threshold limit of Rs 10000/- is not crossed. Had TDS been deducted entry would have been--

Accrued Interest Account Dr Rs 4050
TDS Receivable A/c Dr Rs 450
To Interest A/c Rs 4500