Fd issue

Dear All,

FD is created in January 2012 which was matured on March 2012.

 

Due to oversight FD matured is not accounted and showing in opening balances of April, 2012 and need a guidance related to accounting entries.

Unfortunately our bank reco is also done adjusting that receipt part of FD realised.

 

Regards

Rauf Sayyed

 

Replies (3)

Credit the interest portion to Prior Period Items. 

For principal portion, pass a normal entry in the current year. 

Dear Sir,

 

Thanks for your update.

 

Unfortunately bank reco is also done adjusting that receipt part of FD realised. For credit we must have to passed entry in the related bank accounts. Hope you understand the issue now and revert 

 

Regards

Rauf Sayyed

If no entry was passed in previous year,

Bank Account .. Dr

To FD Account

To Prior Period Items (Interest Portion)

This will knock off the item in Bank Reco. 

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