What is meaning of accrued interest

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Accrued interest refers to interest that has been earned but not yet paid out. In this discussion, it relates to interest on a Fixed Deposit (FD) that was compounded in a previous year and not paid. When the FD matured, the total amount paid included the principal, the previously accrued interest, and the current year's interest.

Daya

Daya (Querist)
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07 January 2025 Bank Account Dr.1,09,094
To Accrued interest 8642
To Interest Income 452
To FDR 1,00,000
Here what is meaning of Accrued interest

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 January 2025 In the referred case the accrued interest was compounded to FD principal in earlier year and not paid. On its maturity, current year interest is paid is 452/-while total amount paid along with principal & accrued interest + current year interest is 109094/-

Daya

Daya (Querist)
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07 January 2025 Sir ,
i just want to Know Accrued interest Rs.8642 ,
whether 8642 previous year income or other thing

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 January 2025 previous income ....

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