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Earmarked funds and earmarked investment- journa lentries

Neha Sharma (article trainee) (24 Points)

09 April 2016

Can you please provide journal entries for 1) creation of earmarked funds from reserves and surplus 2) investment of above funds in fixed deposit(earmarked investment) 3) recording of interest considering TDS receivable Please note: Earmarked funds and earmarked investment must be tallied.

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2 Replies

R Umapathy (GM) (22 Points)
Replied 01 July 2018

1. Dr. Reserves

Cr. EarMarked Funds

(For Earmarked funds creation)

2. Dr. Fixed Deposit

Cr. Bank

(For Fixed Deposit investment)

3. Dr. Bank

Dr. TDS Receivable

Cr. Interest Accured from the fund.

( For Interest Accural)- The Interest accural should be classified under Liability and not to be considered as Income in the P&L.

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hitesh (chartered accountant) (102 Points)
Replied 16 December 2020

IT dept will give refund or demand tax on the overall income of the trust. how to find out refund is for a particular fund, when there are many funds deposits and many TDS?