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How to enter FD(fixed deposit) entries in Tally

vinayak c. chavan (CPT passed) (1011 Points)

20 January 2011

I have taken new FD(fixed deposit) rs.5000 from my bank account for 3 years with 8% cumulative interest on it. Now how shoild i passed entry for this FD in tally. How will i make entry for interest on FD.
Should i make following entries:
1) FD 5000 Dr.
to Bank a/c 5000
2) FD 400
to interest on FD 400
(being inteest in FD)

does i am correct??

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33 Replies

rachit jain (chartered accountant ) (635 Points)
Replied 20 January 2011

for f.d

bank a/c dr

to cash

and for interest

bank a/c dr

to interest a/c

1 Like

(Guest)

Say you have made fixed deposit with SBI Bank

1st year:

1) Fixed Deposit with SBI...............Dr.
To, Bank/Cash A/c

2) Accrued Interest on FD..............Dr.
To, Interest on FD

2nd Year:

1) Accrued Interest on FD.............Dr.
To, Interest on FD

3rd year:

1) Accrued Interest on FD.............Dr.
To, Interest on FD

2) Fixed Deposit with SBI.............Dr.
To, Accrued Interest on FD

3) Bank A/c...................Dr.
To, Fixed Depsit with SBI

7 Like

vinayak c. chavan (CPT passed) (1011 Points)
Replied 20 January 2011

Originally posted by : Deep @ k Gupt/\
	Say you have made fixed deposit with SBI Bank 1st year: 1) Fixed Deposit with SBI...............Dr. To, Bank/Cash A/c 2) Accrued Interest on FD..............Dr. To, Interest on FD 2nd Year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 3rd year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 2) Fixed Deposit with SBI.............Dr. To, Accrued Interest on FD 3) Bank A/c...................Dr. To, Fixed Depsit with SBI

Under which head should i enter Accrued Interest on FD in tally....

as FD will come under deposits and interest comes under indirect income so

Accrued Interest on FD comes under???????

2 Like

(Guest)

Accrued Interest on FD - Current Assets

1 Like

(Guest)

Originally posted by : Deep @ k Gupt/\
	Say you have made fixed deposit with SBI Bank 1st year: 1) Fixed Deposit with SBI...............Dr. To, Bank/Cash A/c 2) Accrued Interest on FD..............Dr. To, Interest on FD 2nd Year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 3rd year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 2) Fixed Deposit with SBI.............Dr. To, Accrued Interest on FD 3) Bank A/c...................Dr. To, Fixed Depsit with SBI

Saurabh Anokhchand Jain (Chartered Accountant) (1043 Points)
Replied 21 January 2011

At time of making Fixed Deposist

Fixed Deposist A/c .....Dr 5000

To Cash/Bank ....... Cr 5000

Interest Accured Rs 1000 (And no TDS deducted)

Fixed Deposist A/c ..Dr 1000

To Interest ..Cr 1000

Interest Accured Rs 1000 and TDS deducted Rs 100

Fixed Deposist Dr 900

TDS Dr 100

To Interest Cr 1000

2 Like

(Guest)

Originally posted by : saurabhjain
	At time of making Fixed Deposist Fixed Deposist A/c .....Dr 5000 To Cash/Bank ....... Cr 5000 Interest Accured Rs 1000 (And no TDS deducted) Fixed Deposist A/c ..Dr 1000 To Interest ..Cr 1000 Interest Accured Rs 1000 and TDS deducted Rs 100 Fixed Deposist Dr 900 TDS Dr 100 To Interest Cr 1000

Question of TDS receivable does not arise since interest from bank is below the threshhold limit of 10,000 w.e.f. 01.07.2010 but in any other case it crosses the limit then the following entry should be passed each year.

Accrued Interest on FD..............Dr (In case of no TDS)
To, Interest on FD

Accrued Interest on FD..............Dr (In case of TDS)
TDS On FD Interest....................Dr
To, Interest on FD

Tanay (CA Final Student) (274 Points)
Replied 21 January 2011

@ Deepak Gupta - Bhai tu bahut hi bhari aadmi hai...

(Guest)

Originally posted by : Tanay
	@ Deepak Gupta - Bhai tu bahut hi bhari aadmi hai...

Thanks for the reminder yaar......bohut din se apna weight check nahi kiya......

1 Like

KIRAN G BHAT (ACCOUNTANT) (27 Points)
Replied 21 January 2011

Dear Vinayak

The bank calculates interest every 3 months. You have to treat the interest which is due from bank every 3 months.

When you make the FD

Fixed Deposit A/c Dr <Your amount>

To Bank/Cash < Your Amount>

End month 3 , 6 ,9 12

Accrude Interest Dr

To Interest A/c

At the end of 3 years i.e when the FD matures

Bank /Cash Dr

To Accrude Interest

To Fixed Deposit

Hope this will clear your doubts

1 Like

YOgesh Gupta (Lawyer) (37 Points)
Replied 24 January 2011

Deepak, Great attempt thanks for guidance. keep ahead.

Shawan Banerjee (Junior Accountant) (23 Points)
Replied 28 September 2011

what will be this entry in tally and in which head (payment/journal/receipt/contra) it will come?

D. Dasgupta, an individual, made a FD with SBI for Rs. 20000 for 3 years w.e.f 31.07.2007 and interest rate is 6.5% per annum; What will be the total amount of FD for the year ended 31.03.2011?

Bhaskar Unnikrishnan CPA CMA (Accounts / Administration) (414 Points)
Replied 29 September 2011

Originally posted by : Member (Account Deleted)
	Say you have made fixed deposit with SBI Bank 1st year: 1) Fixed Deposit with SBI...............Dr. To, Bank/Cash A/c 2) Accrued Interest on FD..............Dr. To, Interest on FD 2nd Year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 3rd year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 2) Fixed Deposit with SBI.............Dr. To, Accrued Interest on FD 3) Bank A/c...................Dr. To, Fixed Depsit with SBI