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)

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)

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)

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)

07 January 2025 previous income ....

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