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vinayak c. chavan (CPT passed)     20 January 2011

How to enter FD(fixed deposit) entries in Tally

I have taken new FD(fixed deposit) rs.5000 from my bank account for 3 years with 8% cumulative interest on it. Now how shoild i passed entry for this FD in tally. How will i make entry for interest on FD.
Should i make following entries:
1) FD 5000 Dr.
to Bank a/c 5000
2) FD 400
to interest on FD 400
(being inteest in FD)

does i am correct??



 32 Replies

rachit jain

rachit jain (chartered accountant )     20 January 2011

for f.d

bank a/c dr

to cash 

and for interest 

bank a/c dr 

to interest a/c 

1 Like

(Guest)

Say you have made fixed deposit with SBI Bank

1st year:

1) Fixed Deposit with SBI...............Dr.
    To, Bank/Cash A/c

2) Accrued Interest on FD..............Dr.
     To, Interest on FD

2nd Year:

1) Accrued Interest on FD.............Dr.
     To, Interest on FD

3rd year:

1) Accrued Interest on FD.............Dr.
     To, Interest on FD

2) Fixed Deposit with SBI.............Dr.
     To, Accrued Interest on FD

3) Bank A/c...................Dr.
     To, Fixed Depsit with SBI

7 Like
vinayak c. chavan

vinayak c. chavan (CPT passed)     20 January 2011

Originally posted by : Deep @ k Gupt/\

Say you have made fixed deposit with SBI Bank

1st year:

1) Fixed Deposit with SBI...............Dr.
    To, Bank/Cash A/c

2) Accrued Interest on FD..............Dr.
     To, Interest on FD

2nd Year:


1) Accrued Interest on FD.............Dr.
     To, Interest on FD

3rd year:

1) Accrued Interest on FD.............Dr.
     To, Interest on FD

2) Fixed Deposit with SBI.............Dr.
     To, Accrued Interest on FD

3) Bank A/c...................Dr.
     To, Fixed Depsit with SBI

 

Under which head should i enter Accrued Interest on FD in tally....

as FD will come under deposits and interest comes under indirect income so

Accrued Interest on FD comes under???????

2 Like

(Guest)

Accrued Interest on FD - Current Assets

1 Like

(Guest)
Originally posted by : Deep @ k Gupt/\

Say you have made fixed deposit with SBI Bank

1st year:

1) Fixed Deposit with SBI...............Dr.
    To, Bank/Cash A/c

2) Accrued Interest on FD..............Dr.
     To, Interest on FD

2nd Year:


1) Accrued Interest on FD.............Dr.
     To, Interest on FD

3rd year:

1) Accrued Interest on FD.............Dr.
     To, Interest on FD

2) Fixed Deposit with SBI.............Dr.
     To, Accrued Interest on FD

3) Bank A/c...................Dr.
     To, Fixed Depsit with SBI
CA Saurabh Anokhchand Jain

CA Saurabh Anokhchand Jain (Chartered Accountant)     21 January 2011

At time of making Fixed Deposist

Fixed Deposist A/c .....Dr 5000

To Cash/Bank      ....... Cr             5000

 

Interest Accured Rs 1000 (And no TDS deducted)

Fixed Deposist A/c    ..Dr   1000

To Interest                  ..Cr              1000

 

Interest Accured Rs 1000 and TDS deducted Rs 100

Fixed Deposist         Dr   900

TDS                            Dr   100

To Interest                Cr           1000

 

 

 

2 Like

(Guest)
Originally posted by : saurabhjain

At time of making Fixed Deposist

Fixed Deposist A/c .....Dr 5000

To Cash/Bank      ....... Cr             5000

 

Interest Accured Rs 1000 (And no TDS deducted)

Fixed Deposist A/c    ..Dr   1000

To Interest                  ..Cr              1000

 

Interest Accured Rs 1000 and TDS deducted Rs 100

Fixed Deposist         Dr   900

TDS                            Dr   100

To Interest                Cr           1000

 
 

Question of TDS receivable does not arise since interest from bank is below the threshhold limit of 10,000 w.e.f. 01.07.2010 but in any other case it crosses the limit then the following entry should be passed each year.

Accrued Interest on FD..............Dr         (In case of no TDS)
     To, Interest on FD

Accrued Interest on FD..............Dr         (In case of TDS)
TDS On FD Interest....................Dr
To, Interest on FD

 



Tanay

Tanay (CA Final Student)     21 January 2011

@ Deepak Gupta - Bhai tu bahut hi bhari aadmi hai...


(Guest)
Originally posted by : Tanay

@ Deepak Gupta - Bhai tu bahut hi bhari aadmi hai...

Thanks for the reminder yaar......bohut din se apna weight check nahi kiya......

1 Like
KIRAN G BHAT

KIRAN G BHAT (ACCOUNTANT)     21 January 2011

Dear Vinayak

The bank calculates interest every 3 months.  You have to treat the interest which is due from bank every 3 months. 

When you make the FD 

Fixed Deposit A/c Dr <Your amount>

To Bank/Cash  < Your Amount>

End month 3  , 6 ,9 12 

Accrude Interest Dr

To Interest A/c

At the end of 3 years i.e when the  FD matures

Bank /Cash  Dr

 To Accrude Interest 

To Fixed Deposit 

Hope this will clear your doubts

 

1 Like
YOgesh Gupta

YOgesh Gupta (Lawyer)     24 January 2011

Deepak, Great attempt thanks for guidance. keep ahead.

Shawan Banerjee

Shawan Banerjee (Junior Accountant)     28 September 2011

what will be this entry in tally and in which head (payment/journal/receipt/contra) it will come?

D. Dasgupta, an individual, made a FD with SBI for Rs. 20000 for 3 years w.e.f 31.07.2007 and interest rate is 6.5% per annum; What will be the total amount of FD for the year ended 31.03.2011?

Bhaskar Unnikrishnan CPA CMA

Bhaskar Unnikrishnan CPA CMA (Accounts / Administration)     29 September 2011

Originally posted by : Member (Account Deleted)

Say you have made fixed deposit with SBI Bank

1st year:

1) Fixed Deposit with SBI...............Dr.
    To, Bank/Cash A/c

2) Accrued Interest on FD..............Dr.
     To, Interest on FD

2nd Year:


1) Accrued Interest on FD.............Dr.
     To, Interest on FD

3rd year:

1) Accrued Interest on FD.............Dr.
     To, Interest on FD

2) Fixed Deposit with SBI.............Dr.
     To, Accrued Interest on FD

3) Bank A/c...................Dr.
     To, Fixed Depsit with SBI

 Perfect One... Thank You... :)

Bablu Kumar Jha

Bablu Kumar Jha (Accounts Manager)     21 June 2012

Dear above are true!

while your are deposite this amount as FD to bank, entry as

1. F/D with bank (Mentioned Bank name) -- Dr.

              to cash / bank a/c              ----------Cr.

(Being amt deposit for FD for 3yrs)

 

End of the financial year

2. Intt. accured on F/D--------------Dr.

        to Interest on F/D---------------Cr.

same entry do untill the maturity of F/D

AFTER MATURITY OF F/D 

Bank a/c--------------------------DR.

   To  Interest Accured on F/d-----Cr.

Hence, in books of accounts Interest accured on F/D balances get NIL & payment will receive in Bank. thus entry will close.

Regards,

Bablu Kumar Jha

9716941489

 

 


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