Entry for transfer of funds from current a/c to F.D?

malarvannan (accounts executive) (133 Points)

29 June 2011  

Dear friends

Our company bank a/c  having balance of 5 lacs. If i transfer the partial funds say 4lacs to short term deposits(f.d)

How to make entry for this.

As per my knowledgethe entry is



                                               Sh.term dep a/c dr  4 00000                       ---- under bank accounts

                                                   to bank a/c                400000                     

Please clarify whether the entry is right or wrong.

Thx., in advance

malarvannan.d