Fixed deposits

This query is : Resolved

Tapash Kumar Biswas (Querist)
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16 June 2012 I invest Rs.5,00,000/- in FDR on 20.05.2010.
Date of Maturity : 14.06.2011
Rate is 6.75%.
Maturity Value Rs.5,37,086/-

But I got Rs. 5,34,060/- on maturity.

On 17.06.2011 I reinvest the FD . Rate of Interest 8.75 %

I got TDS Certificate as on 31.03.2012. The interest comes to Rs.44316/- and TDS Rs. 3711/-.

Need EXPERTS advice for making entry in my books of Accounts.

BHARATH KOTHARI

BHARATH KOTHARI (Expert)
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17 June 2012 Hey Tapas you need to Pass Accrued Interest Entry as menetioned Below

Accured Interest A/c Dr. 44316
to Interest A/c Cr. 44316

TDS Receivable A/c Dr. 3711
to Accrued Interest

Please Check the TDS Interest the for Two FD and one for 500000 for 01/04/2011 to 14/06/2011 and other interest on 534060

if any further query do mail @ bharath@taxiq.in

Tapash Kumar Biswas

Tapash Kumar Biswas (Querist)
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21 June 2012 Thanks for reply. But another suggestion is needed for resolve the above mentioned issue which is stated below :

1) What entry I make on 04.06.2011 , when the FD matured and the value comes from 5,00,000 to 5,34,060/- ?

Please advice

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BHARATH KOTHARI

BHARATH KOTHARI (Expert)
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24 June 2012 Hey Tapash
i wil give a example For Eg. FD amount 10000 @9% made on 01/10/2011

during the of income tax return u have might have booked for Rs 450 interest Accured but not due

& then break the FD on 01/07/2011

the total amount u get from the FD is 10775/-

then Below entry will be passed
Bank A.c Dr 10775
To FD 10000
To Accureed Interest 450
To Interest Income 225