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

 

  1. Accounts and Finance
  2. Step 2 Passing Routine Entries

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

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.