vinayak c. chavan (CPT passed) (1011 Points)
20 January 2011
I have taken new FD(fixed deposit) rs.5000 from my bank account for 3 years with 8% cumulative interest on it. Now how shoild i passed entry for this FD in tally. How will i make entry for interest on FD.
Should i make following entries:
1) FD 5000 Dr.
to Bank a/c 5000
2) FD 400
to interest on FD 400
(being inteest in FD)
does i am correct??
rachit jain
(chartered accountant )
(635 Points)
Replied 20 January 2011
for f.d
bank a/c dr
to cash
and for interest
bank a/c dr
to interest a/c
Say you have made fixed deposit with SBI Bank
1st year:
1) Fixed Deposit with SBI...............Dr.
To, Bank/Cash A/c
2) Accrued Interest on FD..............Dr.
To, Interest on FD
2nd Year:
1) Accrued Interest on FD.............Dr.
To, Interest on FD
3rd year:
1) Accrued Interest on FD.............Dr.
To, Interest on FD
2) Fixed Deposit with SBI.............Dr.
To, Accrued Interest on FD
3) Bank A/c...................Dr.
To, Fixed Depsit with SBI
vinayak c. chavan
(CPT passed)
(1011 Points)
Replied 20 January 2011
| Originally posted by : Deep @ k Gupt/\ | ||
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Say you have made fixed deposit with SBI Bank 1st year: 1) Fixed Deposit with SBI...............Dr. To, Bank/Cash A/c 2) Accrued Interest on FD..............Dr. To, Interest on FD 2nd Year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 3rd year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 2) Fixed Deposit with SBI.............Dr. To, Accrued Interest on FD 3) Bank A/c...................Dr. To, Fixed Depsit with SBI |
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Under which head should i enter Accrued Interest on FD in tally....
as FD will come under deposits and interest comes under indirect income so
Accrued Interest on FD comes under???????
| Originally posted by : Deep @ k Gupt/\ | ||
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Say you have made fixed deposit with SBI Bank 1st year: 1) Fixed Deposit with SBI...............Dr. To, Bank/Cash A/c 2) Accrued Interest on FD..............Dr. To, Interest on FD 2nd Year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 3rd year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 2) Fixed Deposit with SBI.............Dr. To, Accrued Interest on FD 3) Bank A/c...................Dr. To, Fixed Depsit with SBI |
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Saurabh Anokhchand Jain
(Chartered Accountant)
(1043 Points)
Replied 21 January 2011
At time of making Fixed Deposist
Fixed Deposist A/c .....Dr 5000
To Cash/Bank ....... Cr 5000
Interest Accured Rs 1000 (And no TDS deducted)
Fixed Deposist A/c ..Dr 1000
To Interest ..Cr 1000
Interest Accured Rs 1000 and TDS deducted Rs 100
Fixed Deposist Dr 900
TDS Dr 100
To Interest Cr 1000
| Originally posted by : saurabhjain | ||
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At time of making Fixed Deposist Fixed Deposist A/c .....Dr 5000 To Cash/Bank ....... Cr 5000 Interest Accured Rs 1000 (And no TDS deducted) Fixed Deposist A/c ..Dr 1000 To Interest ..Cr 1000 Interest Accured Rs 1000 and TDS deducted Rs 100 Fixed Deposist Dr 900 TDS Dr 100 To Interest Cr 1000 |
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Question of TDS receivable does not arise since interest from bank is below the threshhold limit of 10,000 w.e.f. 01.07.2010 but in any other case it crosses the limit then the following entry should be passed each year.
Accrued Interest on FD..............Dr (In case of no TDS)
To, Interest on FD
Accrued Interest on FD..............Dr (In case of TDS)
TDS On FD Interest....................Dr
To, Interest on FD
Tanay
(CA Final Student)
(274 Points)
Replied 21 January 2011
@ Deepak Gupta - Bhai tu bahut hi bhari aadmi hai...
| Originally posted by : Tanay | ||
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@ Deepak Gupta - Bhai tu bahut hi bhari aadmi hai... |
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Thanks for the reminder yaar......bohut din se apna weight check nahi kiya......
KIRAN G BHAT
(ACCOUNTANT)
(27 Points)
Replied 21 January 2011
Dear Vinayak
The bank calculates interest every 3 months. You have to treat the interest which is due from bank every 3 months.
When you make the FD
Fixed Deposit A/c Dr <Your amount>
To Bank/Cash < Your Amount>
End month 3 , 6 ,9 12
Accrude Interest Dr
To Interest A/c
At the end of 3 years i.e when the FD matures
Bank /Cash Dr
To Accrude Interest
To Fixed Deposit
Hope this will clear your doubts
YOgesh Gupta
(Lawyer)
(37 Points)
Replied 24 January 2011
Deepak, Great attempt thanks for guidance. keep ahead.
Shawan Banerjee
(Junior Accountant)
(23 Points)
Replied 28 September 2011
what will be this entry in tally and in which head (payment/journal/receipt/contra) it will come?
D. Dasgupta, an individual, made a FD with SBI for Rs. 20000 for 3 years w.e.f 31.07.2007 and interest rate is 6.5% per annum; What will be the total amount of FD for the year ended 31.03.2011?
Bhaskar Unnikrishnan CPA CMA
(Accounts / Administration)
(414 Points)
Replied 29 September 2011
| Originally posted by : Member (Account Deleted) | ||
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Say you have made fixed deposit with SBI Bank 1st year: 1) Fixed Deposit with SBI...............Dr. To, Bank/Cash A/c 2) Accrued Interest on FD..............Dr. To, Interest on FD 2nd Year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 3rd year: 1) Accrued Interest on FD.............Dr. To, Interest on FD 2) Fixed Deposit with SBI.............Dr. To, Accrued Interest on FD 3) Bank A/c...................Dr. To, Fixed Depsit with SBI |
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Perfect One... Thank You... :)
Bablu Kumar Jha
(Accounts Manager)
(266 Points)
Replied 21 June 2012
Dear above are true!
while your are deposite this amount as FD to bank, entry as
1. F/D with bank (Mentioned Bank name) -- Dr.
to cash / bank a/c ----------Cr.
(Being amt deposit for FD for 3yrs)
End of the financial year
2. Intt. accured on F/D--------------Dr.
to Interest on F/D---------------Cr.
same entry do untill the maturity of F/D
AFTER MATURITY OF F/D
Bank a/c--------------------------DR.
To Interest Accured on F/d-----Cr.
Hence, in books of accounts Interest accured on F/D balances get NIL & payment will receive in Bank. thus entry will close.
Regards,
Bablu Kumar Jha
9716941489
CAclubindia
