Check sibling questions
Accounts and Finance
Step 2 Passing Routine Entries

FD is made at bank for a limited period

Whole amount including interest is received on maturity

FD EnTRIES.jpg

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

 


Transcript

Option 1 FD DR 50 TO BANK 50 FD DR 2 TO INTEREST INCOME 2 BANK DR 52 TO FD 52 Option 2 FD DR 50 TO BANK 50 ACCRUED INT. DR 2 TO INTEREST INCOME 2 BANK DR 52 TO FD DR 50 TO ACCRUED INT. 2

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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.