Accounting entry

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2012 I have an FD amount of Rs. 5,00,000/-as on 31.03.2011.

Maturity Value of Rs.5,34,060/-.Matured Date is 14.06.2011.

I reinvest the whole amount that is 5,34,060/- on 14.06.2011.

As on 31.03.2012 I recieved Interest Certificate Rs.44316/- and TDS Rs.3711/-

Can anybody help me for what entry need to be done in my books.

Thanks in advance.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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05 June 2012 it will depend upon the accounting system followed by you. If it is on cash basis, it interest income should be recognised on the date of encashment of FD otherwise Interest income should be recognised as and when interest becomes receivable

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 June 2012 Interest Accrued on FDR A/c Dr 44,316
TDS Receivable A/c Dr 3,711
To Interest on FDR 48,027

Rs. 48,027 shall be your income and shall be taxable under the head Income from Other Sources.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2012 Dear Sir Thanks for Answer regarding the Entry of FDR. 1)Is it necessary to make entry on 14.06.11 when my FDR matured and the FDR value comes to Rs.5,34,060 fromm Rs.5,00,000/- ? 2)The entry which you prescribed,is to for 31.03.2012 ? Waiting for your valued reply. I maintain the Accounts in Cash Basis system.