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Accrued Interest from Interest Certificate

ashu gupta (accountant) (56 Points)

21 April 2021

Hii

Just want to know, how to book interest income/accrued interest from interest certificate.

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5 Replies

prasad Nilugal (3909 Points)
Replied 21 April 2021

1)when you receive interest pass entry .

Bank A/c Dr
To Interest Income A/c Cr
( Being interest income received )

2)Accured Interest Entry will be

Accured Interest A/c Dr
Interest Income A/c Cr
( Being interest accrued but not received) .

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 21 April 2021

Calculate the interest accrued by calculating the interest rate on principal amount.

TDS Receivable a/c dr
Interest receivable a/c dr
to Accrued Interest a/c

prasad Nilugal (3909 Points)
Replied 22 April 2021

In continuation to my above entries , When you received accrued interest in you account and TDS applicable then entry will be

Bank A./c Dr

TDS on interest A/c Dr

To Accrued Interest A/c Cr

( Being accrued Interest received after TDS deduction )

NaviN (Consultant) (120 Points)
Replied 23 June 2022

What does this mean? Do I have to declare the sum of interest received and the accrued interest when filing my tax teturns? My SBI interest certificate FY2021-22 shows separate columns for interest and accrued interest. Why do we need to consider accrued interest if it has not yet been credited to the account?