nsc

Hi,

NSC are issued for 5 years and at present interest rate is 8% p.a. compounded annually. On NSC you get your full value with interest after 5 years.

but in calculation how month adjust in it.  actually i ask becoz i have prepare a projected balancesheet  just before  5 years.  how can i calculate in this interium period.

Dear Sudhir,

Actually in Accounting, we do not recognize interest in first year of purchase. So ignore months because interest gets due only after a year. You start recognizing the interest from next year and so on.

thanks sir