Journal entry

This query is : Resolved

alphonsekm@gmail.com (Querist)
Follow

27 May 2014 Could you please explain the journal entries and the effect in R&P Account

1. FD Balance as on 01.04.2013 is Rs. 41,09,947.00 (This includes FD principle Amnt 40,00,000 and Int acrued 109947)

2. During the year FD is closed and recieved interest of 179442.00, what is the journal entry?

3. How this will effect in the Receipts and Payments Account?

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

03 June 2014 Receipts and payment account is nothing but a Cash book
.
.
hence cash paid and cash received only effects R&P account
.
.
interest accrued will not effect and interest received in cash/bank will effect