Journal entry for interest on FD

Quick Summary
Interest on FD is recorded on accrual basis. Entry: Interest Receivable Dr and TDS Receivable Dr to Interest Income. Interest is shown in PL, receivable added to FD in balance sheet, while FD principal remains unchanged till maturity.

Dear Sir,

 

please guide how to Entry pass in tally fixed deposit but note matured  

 

Singhniranjan736 @ gmail.com

 

Dear Sir,

 

please guide how to Entry pass in tally fixed deposit but note matured  

Do we need to pass monthly provision for the accrued interest and reversal?

Yes, it is generally necessary to pass a monthly provision for accrued interest and reversal. This provision helps account for the accrual of interest expenses or income that has been earned but not yet received or paid. By recognizing this accrual, financial statements can reflect a more accurate representation of the company's financial position and performance.

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