Interest Accrued

Page no : 2

Akram (C.A.FINAL) (136 Points)
Replied 26 May 2011

Aap sab loug itney confuse kiyoun hain bhai ...

Agar accrual base accounting hey to ye entry hogi ...(Current year main)

Interest accrued but not due a/c dr (current asset) . 257195/-

TDS rec.A/c dr (current ass) 64300/

To Interest on fdr (Income) Cr. 321495

1 Like

Deepak Singh Rawat (Article Assistant) (53 Points)
Replied 29 May 2011

Acc. to my knowledge

Accrued Interest Dr. 257195

TDS on Interest Dr. 64300 {Loan & advances(assets)}

To Interest Income 321495

This is simple entry as we all know. We also know that FD has a compounded interest. So, accrued interest add up in the amount of FD by this entry,

FD A/c Dr. 257195

To Accrued Interest 257195

Then in the next year the interest income would not be in 50lacs. It will be on 52,57,195.

anil kumar (Study) (52 Points)
Replied 29 May 2011

INTEREST RECEIVABLE A/C (NET INTEREST) DR 257195

TDS A/C DR 67300

TO INTEREST INCOME A/C (GROSS INCOME) 321495.

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