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FD is made at bank for a limited period

Whole amount including interest is received on maturity

 

Entries are as follows

 

Entry for FD made

FD A/c Dr

   to  Bank

 

Entry for Interest Earned

FD A/c Dr

  to Interest Income A/c

 

Entry for Maturity of FD

Bank/Cash Dr

   to FD A/c

 

Pass Entries

On 1 April 8% FD Made in ICICI Bank by transferring from ICICI Current Account Rs 100000 for 3 months

On 30 June,total amount of FD including interest was received in cash

View Answer

 

  1. Accounts and Finance
  2. Step 2 Passing Routine Entries
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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