Treatment of FDR intrest
This query is : Resolved
02 August 2010
FDR has been made with the bank for 1000 days
how would be the treatment of the interest received & int. to be received
how would be the treatment of the interest received & int. to be received
02 August 2010
INTERST WILL BE TAXABLE ON ACCURAL BASIC.
02 August 2010
INTEREST ACCRUED DURING THE YEAR HAS TO BE BOOKED IN THE ACCOUNTS.
02 August 2010
Sir can you explain me with the help of an example...???
02 August 2010
yes,
In books you have to shown
In Profit & loss a/c
Interst accured on FDR will shown in Indirect income.
In Balance Sheet Under Current asset
FDR With Bank FD AMount
Interst accured on FDR Accured intererst till date of closing of accounts.
In books you have to shown
In Profit & loss a/c
Interst accured on FDR will shown in Indirect income.
In Balance Sheet Under Current asset
FDR With Bank FD AMount
Interst accured on FDR Accured intererst till date of closing of accounts.
02 August 2010
Sir in my opinion in case of individual following 3 treatments will be reuired to made.
1. Intrest recvd. on FDR for the relevant year will be credited to capital account.
2. Amount of FDR will be shown in Assest side of Balance Sheet
3. Intrest accured but not due would be shown in the Assests side As Intrest Acccrued.
Am i correct
1. Intrest recvd. on FDR for the relevant year will be credited to capital account.
2. Amount of FDR will be shown in Assest side of Balance Sheet
3. Intrest accured but not due would be shown in the Assests side As Intrest Acccrued.
Am i correct
02 August 2010
SAURABH YOU ARE ABSOLUTELY CORRECT.
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02 August 2010
We do our accounting on accrual basis.
Interest which relates to relevant period will be part of income and Interest which is accued but not due for relevant period will be shown under Current assets.
Interest which relates to relevant period will be part of income and Interest which is accued but not due for relevant period will be shown under Current assets.
02 August 2010
dEAR MR. SAURAB,
AS & WHEN YOU WILL SHOWN INTERST ACCURED ON FDR IN MISLL INCOME. THEN IT WILL BECOME PART OF PROFIT .
PROFIT WILL BE T/F TO CAPITAL A/C.
YOU NEED NOT TO SEPRATELY T /F INTEREST ACCURED TO CAPTIAL A/C.
AS & WHEN YOU WILL SHOWN INTERST ACCURED ON FDR IN MISLL INCOME. THEN IT WILL BECOME PART OF PROFIT .
PROFIT WILL BE T/F TO CAPITAL A/C.
YOU NEED NOT TO SEPRATELY T /F INTEREST ACCURED TO CAPTIAL A/C.
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