Journal entry for interest on FD


i faced a problem in of our client has passed following journal .he has deposited 12lac for 3 years as fixed deposit with HDFC 31 st march he received intrest statement stating 50000 as intrest accrued on above and 5000being TDS FD value being 12.5 lac..he passed following journal

TSD(receivable)    5000     Dr.

Intrestreceivable  45000    Dr.

   To intrest accrued on FD(indirect income)                         50,000

i found it right but my question is it will affect p/l a/c i heard interest on fd must be capitalized in to FD balance in balance sheet.... if above entry how will it be capitalized????????