FD Interest

This query is : Resolved

survesh (Querist)
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14 September 2010 An FD of Rs.1 crore has been made.300000.00 Interest have been received in FD.FD Maturity Period is 3 Years.

My Query IS: 300,000.00 Interest Received is to Be Debited to FD or Interest Accrued.Please Say is it Accured

Entry : FD Ac Dr (deposits) to Ineterst Ac Cr (Income)

OR
Accrued Interest on FD Dr (Current Asset ) to Interest on FD ( Income)

Are the entry Right.Please Say.

Thanks & Regards

CA SMR

CA SMR (Expert)
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14 September 2010 If the interest earned on FD is reinvested along with the FD amount after maturity,then the first entry is correct.Else the second entry will be correct.

CA Shiv

CA Shiv (Expert)
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14 September 2010 First one is perfect. as interest is accrued and recd.
and charge to P&L also.

If it is deposited again than pass a separate entry

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survesh

survesh (Querist)
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14 September 2010
The FD is for 3 years and Interest Recd as on 31/3/2010 is Rs.300,000.00 for 1 st year

Is this Interest said to be Accrued Or Direct Debit to FD and Cr Interest in PL Ac

What are the condition for Accrud Interest.