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
*

**
**

**
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