A person is running a propritory bussiness and has made an FD from the current account .
FD IS made in the name of the business and not in the name of a person. FD is made for 2 years and 16 days since 2013 . FD was last renewed automatically for the same duration on 3/5/15 which will mature on 19/5/17. Pls note no interest amount/ Principal was credited to the current account as it was automatically renewed on 3/5/15.
MY querry is as under :
What entry should have been passed in April 2013 when the FD was booked and the amount was debited from current account . What entry shoulld have been passed on 31/3/14 and 31/3/15.
What entry should have been passed in the books of accounts on 3/5/15 to show the maturity and creation of new FD .
What entry should have been passed on 31/3/16 in the books of accounts for the interest received and TDS on the amount. Pls guide on urgent basis
CAclubindia
