Interest Accrued

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

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.

          INTEREST RECEIVABLE A/C (NET INTEREST)   DR 257195

          TDS A/C                                                                         DR  67300

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