Co. op. hsg. soc. accounts / accrued interest

This is for Co. Op. Hsg. Soc.

The Society has made 1 FD of Rs.25 Lacs with Private Bank. The FD is for 3 years, and cumulative interest. So interest isn't paid to the society actually.

In this case will the accrued interest show in the income and expensiture statement of the society?
And also it will have to be added to the FD amount on the asset side?

And how is tds treated in this case?

 

Sincerely yours, Kunal.

Replies (2)

Interest to b accounted on accrual basis. Assuming rate of 10% on fd, interest comes to 2.5 lakh which needs to b accounted. Fd to be shown 25 lakh +2.5 lakh -25000 tds = 27.25 lakh. Claim tds of 25000 in the year of accounting interest.

Thanks you Mr Kewlani.

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