11 June 2014
We opened a FD account of rs.1.5 crore. Bank informed us that we cannot closed the FD within one month. SO,We opened OD of Rs.50 lakhs in same bank. after one month we closed the FD a/c, on which we received interest, bank deducted TDS on interest and also taken OD amount of Rs.50 lakhs. The remaining amount transferred in our CC account. Now, In which account group we create the accounts and how the Entry should be passed in Tally. Plz reply as early...
11 June 2014
Bank OD is under current liability and pass all entries as per statement . Interest if any charge to p&l account . FD shown under deposits . on cancellation . credit this FD and also credit the interest(indirect income seperately) . debit the OD account for cancellation .
CAclubindia
