Query on accrued int. on fixed deposit-pls help

the following entries will be passed for accounting interest portion-

Bank a/c dr 

               to Interest a/c

( being the amount received as interest on FD)

Interest accrued on FD ac dr

                to Interest a/c

(being the interest accrued but not received on FD)

Interest ac dr 

                 to profit and loss ac

(being the interest income trasferred to profit and loss ac)

ENTRIES IN THE SUBSEQUENT YEAR..

Interest ac dr 

              to interest accrued but not due

( being the reversal entry)

Bank account dr

              to interest ac

(being the interest amount received against the accrual)

                       OR

instead of above 2 entries a single entry can be passed as follows-

Bank ac dr 

           to Interest accrued but not due..

So, wat ever your senior told is correct..

apart from this..

to get the actual interest received during a perticular year you have to add both interest received during the year(apart from last years accrual) and current year accrual portion.,

Hope this would clarify your doubt..