Regarding fixed deposits

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2013 1. How to calculate interest on fixed deposits when we are auditing a company having fixed deposits.

2. How to differentiate between accured & received & how to calculate that accured amount.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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04 May 2013 While auditing the best way to know all this to tell your client to provide a evidence i.e, interest certificate from the bank,
for the entry in books of accounts, this is what we always do in audit.
it's his duty to provide the same.
in that certificate the amount accrued and received are written separately.

though interest is calculated on the basis of quarterly compound basis and rate is differ from bank to bank.