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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
On 1 st April:
Fixed Deposit Made
ICICI 8% FD A/c Dr 100000
To Bank A/c 100000
On 30 th June:
Entry For Interest Earned
ICICI 8% FD A/c Dr 2000
To Interest on ICICI 8% FD A/c 2000
On 30 th June:
Entry For FD matured and amount received
Cash A/c Dr 102000
To ICICI 8% FD A/c 102000
