what will be the in accounting entry for excess interest received on fdr. without changing fdr and accured interest balance.
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please help accounting entry?
Replies (5)
If the interest amount is reinvested into FDR, then FDR a/c will have to change. I mean it has to be increased by the said excess interest bcoz in the banks books, it would be coming at that amount only.
If it is not reinvested into principle balance and ur case is that in next year, u are getting more than u accrued for that year, then u can put the excess in the bank account. LIke.
Bank A/c Dr. (Total interest recieved)
To Accrued interest (opening accrued)
To Bank Interest. (balance)
THANKS ASHISH SIR....
Yes agree with...................Ashish Sir
If the interest amount is reinvested into FDR, then FDR a/c will have to change. I mean it has to be increased by the said excess interest bcoz in the banks books, it would be coming at that amount only.
If it is not reinvested into principle balance and ur case is that in next year, u are getting more than u accrued for that year, then u can put the excess in the bank account. LIke.
Bank A/c Dr. (Total interest recieved)
To Accrued interest (opening accrued)
To Bank Interest. (balance)
Agreed wid Ashish
Yes Ashish sir is right
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