Accrued Int and Real Interest recd entries

The easiest way is to reverse the entry which was already passed in Mar-11 and pass the following entry for the actual receipt

Dr Bank                          1012055.00

Dr TDS    [1507+274]          1781.00

Cr Interest [1507+12329]                        13836.00

Cr FD                                                      1000000.00

[But not sure how the bank has deducted odd % of TDS]

Thank you very much but can you tell on what date to pass the reversal entries, , and how exactly to pass the reversing entry,,, because in this journal entry of 31 mar 2011 it is already shown that an amount of 15069.44 is recd as income, or to make it more clear, let me give u the account type / head of my entries done

Accrued interest ------- Current Assets

Interest on TDR ----- direct  incomes

TDS  ---------------   TDS for us is current assets, as we get exemption later from IT office...

Please suggest me,

You have to reverse the entry in the current FY (May-11) as 31-Mar Entry is based on the TDS certificate from Bank (I hope so!!!). 

I understood the grouping which was given by you and I also presumed that this would be your further query. If you pass reversal entry in the current FY, interest received will show a negative amt!!!

We can't help it at the time being. But over the period of the time this negative amount will be set off against bank int., if any during the current FY.

in case of premat fd encashment bank reduce the rate of int, but TDS deducted earlier get effective, also bank trasfer the full interest to client and then reverse the premat charges as premat penalty, so the TDS figures always get high, however it does not matter for the person receiving the interest and TDS certificate. as department is aware of such practice of private banks.

on 31st march

Dr ........ Accrued Int ....... 13562.44

Dr.......... TDS .................. 1507 (if TDS dedcuted by bank)

Cr ............ Interest on TDR / FD  ------    15069.44

on 2nd may

Cr..            FD Amount already present / FD Value           1000000

Cr .......... Acured  Interest                                                          13562.44

 Dr          nterest on TDR / FD  (15069.44-12329)               2740.44                         

Cr...... TDS     (1507-274)                                                                             1233

DR bank a/C                                                                         112055

Agree with Mr. @ satish Kumar

accrued interest ------- Current Assets Interest on

TDR ----- direct incomes

TDS  ---------------   TDS for us is current assets

as we get exemption later from IT office...