Fixed deposits

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This query is : Resolved

Tapash Kumar Biswas (Querist)

16 June 2012 I invest Rs.5,00,000/- in FDR on 20.05.2010.
Date of Maturity : 14.06.2011
Rate is 6.75%.
Maturity Value Rs.5,37,086/-

But I got Rs. 5,34,060/- on maturity.

On 17.06.2011 I reinvest the FD . Rate of Interest 8.75 %

I got TDS Certificate as on 31.03.2012. The interest comes to Rs.44316/- and TDS Rs. 3711/-.

Need EXPERTS advice for making entry in my books of Accounts.

BHARATH KOTHARI

BHARATH KOTHARI (Expert)

17 June 2012 Hey Tapas you need to Pass Accrued Interest Entry as menetioned Below

Accured Interest A/c Dr. 44316
to Interest A/c Cr. 44316

TDS Receivable A/c Dr. 3711
to Accrued Interest

Please Check the TDS Interest the for Two FD and one for 500000 for 01/04/2011 to 14/06/2011 and other interest on 534060

if any further query do mail @ bharath@taxiq.in

Tapash Kumar Biswas

Tapash Kumar Biswas (Querist)

21 June 2012 Thanks for reply. But another suggestion is needed for resolve the above mentioned issue which is stated below :

1) What entry I make on 04.06.2011 , when the FD matured and the value comes from 5,00,000 to 5,34,060/- ?

Please advice

BHARATH KOTHARI

BHARATH KOTHARI (Expert)

24 June 2012 Hey Tapash
i wil give a example For Eg. FD amount 10000 @9% made on 01/10/2011

during the of income tax return u have might have booked for Rs 450 interest Accured but not due

& then break the FD on 01/07/2011

the total amount u get from the FD is 10775/-

then Below entry will be passed
Bank A.c Dr 10775
To FD 10000
To Accureed Interest 450
To Interest Income 225

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