Interest accrued but not due

interest accrued but not due will be shown as current assets and will be recognised as income in the year it is due

intt accrued but not due .this entry will come, when income accrued but intt charged not shown in bank stat.

Intt a/c              DR.

 to intt accrued but not due( under head current liabs)

If entry come in bank stat in mar 2010.in bank stat.

when entry will be

Intt a/c        DR.

 to intt accrued & due

& for payment

Intt accrued & due   a/c               DR.

   to bank

Then same case for intt receivable & due

if any comment ,plz reply

my 1st comment was wrong...interest accrued but not due 

interest recievable account   Dr

   To interest income A/c

sry fr d inconvienence

Yes, 

There is requirement of such entry for having your accounts under accrual system.

Company act and accounting standard directs to draw the accounts under accrual system of accounting. Take example of fixed deposit.

Interest accrued will come under asset and corresponding interest  will be taken as income during the period.

Thanx

yup i agree wid arvind's 2nd comment..

his 1st comment was wrong but 2nd one is right

interest recievable account   Dr

   To interest income A/c

Dear friends, Please tell me the relevant entries for the below said facts.

Facts:-Fixed Deposit with Bank- for period of 5 years.

Principal -Rs.4,00,000/-

Interest-     Rs.2,00,000/-

Period of Deposit:5Yrs

Intrest rate: 10%p.a

Entries In Books

1) Fixed Deposit A/c Dr    4,00,000

        To Bank A/c                          4,00,000

2)Please tell me the further entries to be passed ( Concept Relating to Interest Accrued but not due A/c) and its treatment in the books. 

Due entry

Interest receivable a/c  Dr    40,000         

        To Interest income                     40,000

when Interest credited by Bank

Interest income a/c    Dr    40,000

        To P&L a/c                                40,000

Dear Sir,

Your Entry is right but according to me, One more entry should be passed in between the 1st and 2nd Entry 

2) Bank A/c Dr XXX

                        To  Interest Receivable XXX

( Being Interest Received )