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Provision for interest on fixed deposit

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Querist : Anonymous

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Querist : Anonymous (Querist)
25 June 2013 whether such treatment in the books of accounts is correct?
please provide the answer with the related entries as soon as possible.
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Rupesh Jain

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Rupesh Jain (Expert)
26 June 2013 YES AS PER ACCURAL METHOD OF ACCOUNTING YOU HAVE TO PROVIDE INTT . ACCURED BUT NOT DUE ON 31.3.2013

ON 31.3.2013
ACCURED INTT ON FDR
TO INTT.RECD ON FDR


ON MATURTY

BANK
TDS ON FDR

TO INTT ON FDR
TO ACCURED INTT ON FDR
TO FD A/C
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