I do not have commerce or accounting background, so my query may seem very elementary to the people from those disciplines. However, I require it for a pressing need. Would any body please help me?
My queries are the following.
1. Is any income an asset for preparing balance sheet of a very small co-operative housing society?
2. In pursuance of the above , I want to know specifically whether interests paid on fixed deposits in a Financial Year a current asset in addition to the face values of the FDs ?
Face values of FDs are current assets I know. But, what about the interests?
Face values of FDs in an FY have become so after adding previous year's face value and that year's interest when they are renewed year after year. They will become so next year also. So, is there any justification to treat interests as current assets?
3. If my above presumption is correct, then FD interest is only income not current asset, isn't it?
CAclubindia
