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What is the journal entry for fixed deposit interest received

09 June 2024

In Axis Bank Rs 25 lakh FD Made

what is the fixed deposit interest received journal entry in books of accounts how to record in books of accounts what is the entry

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5 Replies

Khush Trivedi (3942 Points)
Replied 09 June 2024

If interest is received

Bank AC......Dr.
To Interest on Fix Deposit

2 Like

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RAJA P M ("Do the Right Thing...!!!") (127865 Points)
Replied 09 June 2024

Ledger Name: INTEREST RECEIVED ON FD
Under : Indirect Incomes

Entry:

Cr. INTEREST RECEIVED ON FD A/c - XXXXX
Dr. Bank A/c - XXXXX

1 Like

ali (Student CA CPT ) (130 Points)
Replied 09 June 2024

if interest is received

Dr. Bank A/c XXXX

Cr. To Interest received on FD A/c XXXX.

1 Like

Neha Sharma (19 Points)
Replied 10 June 2024

I learned this in the Financial Management module while in an online ACCA course. The journal entry for fixed deposit interest received is straightforward: Debit the Bank Account to reflect the increase in funds, and Credit the Interest Income account to record the earned interest. This ensures accurate financial reporting and keeps track of income generated from fixed deposits.