How to enter FD(fixed deposit) entries in Tally

Dear Sir,

                I had faced TO problem from ITR COPY 26AS  HOW TO ACCOUNT IT IN tALLY?

iNTEREST RECEIVABLE 85055 DR UNDER CURRENT ASSET

TDS RECEIVABLE 9451 DR UNDER CURRENT ASSET

INTEREST EARNED ON FD 94506 CR UNDER INDIRECT INCOME

IS IT CORRECT SIR PLEASE CLARIFY

Originally posted by : ashish pandey
	IN WHICH GROUP UNDER OPEN FD LEDGER

Dear friend, it will be grouped under Deposits (assets). 

So, It will vary for all three years, as per the changes in the bank account. 

The first year will be focused on 

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

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

During the second year, it is going to change basically focusing on 

1. accrued interest on FD. 

And in the third year, It will again be focused on 

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 Deposit with SBI

 

A Fixed Deposit (FD) is a financial instrument offered by banks and financial institutions, where you invest a lump sum amount for a fixed tenure at a predetermined interest rate. It is considered a safe investment option because it offers guaranteed returns.

Accounting entries for Fixed Deposits are:

When you invest in a Fixed Deposit, you decrease your bank account because you are paying money to the bank. The accounting entry for this transaction is:
Fixed Deposit Account  Dr
Bank Account  Cr

The bank pays you the interest on your fixed deposit. This interest earned is considered income, so the accounting entry for the interest earned is:
Accrued Interest  Dr
Interest on FD  Cr

When the fixed deposit matures and you receive the principal amount along with the final interest payment, the accounting entry is:
Bank Account  Dr
Fixed Deposit Account  Cr
Accrued Interest  Cr