Dear friends,
is rquired any entry to be booked for the below transaction?. if not, please let me have the reason for not required to be posted any entry.
Interest (Receivable) accrued but not due
9 Replies
Arvind Khemka
(practicing CA)
(210 Points)
Replied 14 May 2010
interest accrued but not due will be shown as current assets and will be recognised as income in the year it is due
DIVYA MITTAL
(AUDIT ACCOUNTS&TAX EXECUTIVE)
(67 Points)
Replied 15 May 2010
intt accrued but not due .this entry will come, when income accrued but intt charged not shown in bank stat.
Intt a/c DR.
to intt accrued but not due( under head current liabs)
If entry come in bank stat in mar 2010.in bank stat.
when entry will be
Intt a/c DR.
to intt accrued & due
& for payment
Intt accrued & due a/c DR.
to bank
Then same case for intt receivable & due
if any comment ,plz reply
Arvind Khemka
(practicing CA)
(210 Points)
Replied 15 May 2010
my 1st comment was wrong...interest accrued but not due
interest recievable account Dr
To interest income A/c
Ritesh Jain
(CA, CS in Job)
(675 Points)
Replied 15 May 2010
Yes,
There is requirement of such entry for having your accounts under accrual system.
Company act and accounting standard directs to draw the accounts under accrual system of accounting. Take example of fixed deposit.
Interest accrued will come under asset and corresponding interest will be taken as income during the period.
Thanx
yash bhartiya
(final student)
(245 Points)
Replied 15 May 2010
yup i agree wid arvind's 2nd comment..
his 1st comment was wrong but 2nd one is right
interest recievable account Dr
To interest income A/c
J V R Punnarao
(Articled Assitant)
(21 Points)
Replied 02 January 2015
Dear friends, Please tell me the relevant entries for the below said facts.
Facts:-Fixed Deposit with Bank- for period of 5 years.
Principal -Rs.4,00,000/-
Interest- Rs.2,00,000/-
Period of Deposit:5Yrs
Intrest rate: 10%p.a
Entries In Books
1) Fixed Deposit A/c Dr 4,00,000
To Bank A/c 4,00,000
2)Please tell me the further entries to be passed ( Concept Relating to Interest Accrued but not due A/c) and its treatment in the books.
CA.Ranjith Kumar Kalyanapu
(Chartered Accountant)
(18 Points)
Replied 09 September 2017
Due entry
Interest receivable a/c Dr 40,000
To Interest income 40,000
when Interest credited by Bank
Interest income a/c Dr 40,000
To P&L a/c 40,000
chirag 1
(2 Points)
Replied 27 November 2020
Dear Sir,
Your Entry is right but according to me, One more entry should be passed in between the 1st and 2nd Entry
2) Bank A/c Dr XXX
To Interest Receivable XXX
( Being Interest Received )
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