If the interest received from endowment fund deposits are reinvested in the endowment fund .
Entry for Endowment fund deposits
Endowment Fund Deposit account-DR
to Interest receive account
But what entry to be passed for endowment fund account ?
Please reply
No entry will be passed in Endowment Fund A/c because Int. is received on Endowment Fund Deposit A/c.
Only when this deposits are withdrew, whatever the profit or loss incurred will be debited or credited respectively in Endowment Fund A/c in that particular year.
Thank you.
Agreed with Mr.Ritesh
Thanks for the reply. I have one more query regarding this . Every year endowment lectures is been held. So if total expense is Rs.25000 and the interest from endowment lecture is Rs.35000. So the rest Rs.10000 is added to endowment fund deposit account. Will there be a change in endowment fund account?
Ranjini Girish
CAclubindia
