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Interest on fd in the case of trust

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adarsh pai

7 Points Posted on 21 September 2022

treatment of interest on fd in the case of trust and treatment in receipt and payment account and how it should be shown in balance sheet

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Quick Summary

This discussion clarifies how interest earned on fixed deposits should be handled within a trust. It covers the correct accounting treatment for both the receipts and payments account and how this income should be presented on the balance sheet. The specific period for which the interest is received is also a key consideration, particularly when fixed deposits are maturing.