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Fixed deposit & its interest accounting

A/c entries 414 views 3 replies

Ajin Dev

1 Points Joined July 2018

i have a probem while accounting Fixed deposit & interest. I have an FD its opening balance is 42,50000 as on (01.04.2017) at the time of closing the financial year (31.03.2018) its interst accrued to 4,04725. but the interest is not received in Bank & not found in 26As. the interest portion is added back to FD.

How to Pass entries in Tally ?

Replies (3)

ravi

officer

36 Points Joined January 2014

interest is accrued income and fd is current asset

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

You ll just add the Interest to FD Account which is above said...
Prepare a Ledger named as "INTEREST RECEIVED ON FD - INDIRECT INCOME"

prepare Journal as following;

Dr. FD Account - Rs. 4,04,725
Cr. Interest Received on FD - Rs. 4,04,725