A co. invested in fixed deposit of Rs 96,00,000 as on 25.02.2016 for 1 year and 3 days .
maturity value on due date i.e on 28.02.2017 is Rs 1,03,29,700.
on maturity date co. reinvested the mature amount of FD for further 1 year .
now in bank statement FD value is shown on 3.04.2017 is Rs 1,02,90,000
what is journal entry for year 15-16 , 16-17 and how the reinvested new fd is recorded and journal entry for reinvested of Fd as on 3.04.2017..
25.02.2016 FD A/c Dr. 9600000
To Bank A/c 9600000
28.02.2017 Bank A/c Dr. 10329700
To FD A/c 9600000
To Interest A/c 729700
28.02.2017 FD A/c Dr 10329700
To Bank A/c 10329700
Here I assume that Interest received on maturity only.
If interest received on intrval then entry may be different.
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