Sole proprietor's Fixed Deposit accounting entries

2837 views 2 replies

I want to know about the accounting entries of Sole Proprietor's Fixed Deposit that under which head in tally it will come and other entries related to it?

Replies (2)

It will come under the head Investment.

Journal Entry.....

1. On deposit.

Fixed Deposit A/c Dr.       Rs. 5,00,000

To Bank                          Rs. 5,00,000

2. On accrued interest  

Fixed Deposit A/c Dr .      Rs. 5,000  

To Accrued interest.         Rs. 5,000

3.On Maturity

Bank A/c Dr                  Rs. 5,05,000

To Fixed Deposit.          Rs. 5,05,000

 

But Mam on checking the other forums on this website I saw that F.D. A/c will come under the Deposit(Assets) head in tally. And entries related to its interest are in this way-

1.  Accrued Interest A/c         Dr.

           To Interest A/c                                                                                                                 (being interest on F.D. is accrued)

 

And on maturity:-

2.  Bank A/c                         Dr.

          To  F.D. A/c

          To  Accrued Interest A/c

(being F.D. is matured and amount received)


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register