Accounting Entry

 Hi Frnds,

I wanna to Know what Accounting Entry to pass if Fixed Deposit is made in Bank...I am from Arts stream so not familiar to it. and where the Items will appear in Financial Statements

Replies (19)

FD with Bank A/c Dr.

   To Bank / Cash A/c

Being FD made into the  bank

Such FD Shown in Assets Side in  Investment head.

Originally posted by :Pranjal
" FD with Bank A/c Dr.

   To Bank / Cash A/c

Being FD made into the  bank

Such FD Shown in Assets Side in  Investment head.
"

 

Correct one.

Originally posted by :Pranjal
" FD with Bank A/c Dr.
   To Bank / Cash A/c
Being FD made into the  bank
Such FD Shown in Assets Side in  Investment head.
"


 

Originally posted by :Pranjal
" FD with Bank A/c Dr.

   To Bank / Cash A/c

Being FD made into the  bank

Such FD Shown in Assets Side in  Investment head.
"

right sir

thank u very much............

Megana,

This is for you.

Accounting principle

For every debit, there must be a corresponding credit

for Nominal account:

Debit all Expenses and Credit all gains and Incomes

for Real Account:

Debit what comes in and credit what goes out

for Personal account

Debit the Receiver and credit Giver.

In your case

Debit Fixed Deposit in Bank and Credit Bank or Cash

Since this is the Investments, naturally comes in Asset Side (Investments) (Current Assets)

F.D A/C DR.

 TO BANK/CASH

(BEING F.D. MADE INTO BANK )

AND IT IS SHOWN IN ASSESTS SIDE AS A INVESTMENT

F.D WITH BANK A/C ...................DR

TO, CASH/BANK

IT WILL BE SHOWN IN THE HEAD OF CURRENT ASSEST IN BALANCE SHEET.

Originally posted by :BIJAY KUMAR RUNGTA
" F.D WITH BANK A/C ...................DR
TO, CASH/BANK
IT WILL BE SHOWN IN THE HEAD OF CURRENT ASSEST IN BALANCE SHEET.
"


 

noooooooooo

aarti jain and Bijay kumar

it should not be shown in balance sheet as current assets it only can be shown as investment

Originally posted by :Meghna Dessai
"  Hi Frnds,
I wanna to Know what Accounting Entry to pass if Fixed Deposit is made in Bank...I am from Arts stream so not familiar to it. and where the Items will appear in Financial Statements
"

Dear Fred
 

 

Entry is

Fixed Deposit a/c   Dr.

   To Bank

FD A/c ..................Dr

      To Bank A/c......Cr

(Being FD deposited to bank)

 

And should be shown in Balance Sheet under the heading Investment

hiii meghna

 

   Bank F.d. a/c                    dr.

   To  Cash/bank a/c

Bank FD A/c Dr.

To Bank A/c

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