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kisan vikas patra

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(Querist)
27 January 2008 my client has investment of kisan vikas patra of rs 1 lac as on 1st april 2003..how much interest should i accrue for financial year 2006-07 (a.y-07-08)..give me the procedure..
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CMA Gul S

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CMA Gul S (Expert)
27 January 2008 normally the interest rate is 8-9%, you can accrue accordingly.

pass the entry

Accrued interest Dr
Interest on Kisan Vikas patra Cr

calculate the full interest in the 5th year and adjust the same to Accrued interest account and balance charge as income
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