Dhanya (nil) (62 Points)
13 July 2011A trust is having a total amount of Fixed Deposit of Rs.2 crores.The same amount is maintained as Building Fund of the said trust under the head Corpus fund. Is there any provision to capitalize the interest accrued on the FD & thereby add it to the Building fund A/C, without crediting the said interest to the Income & Expenditure A/C?
kamal kishor sen
(STUDENT Rajasthan)
(2156 Points)
Replied 13 July 2011
Interest on FD is revenue receipt . it must be credited to I&E A/C.
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