Fund Account - Kindly Help - Urgent

For current year interest recd, you must debit the FD a/c and credit Interest a/c, and then transfer the Interest a/c to the Fund a/c (assuming that the fund is on cumulative basis).

For payments out of the fund, debit the relevant expense/asset a/c and credit the bank a/c.

As far as the difference in FD and fund balance is concerned, it could be due to the entire amt of the fund not being invested or FDs being partially withdrawn. Since the previous audit has been done by some other audit, you may have to verify the transactions relating to the fund and the FDs.

1. get a previous audit report and ask the management for the respective difference......
2. same as told above
3. whenever entries are to b made p&l or income over expenditure is t/f to fund a/c........

entry wll be : expense a/c dr. to cash/bank/ creditor & expense to b t/f to p&l or i/e a/c