I want to know about the accounting entries of Sole Proprietor's Fixed Deposit that under which head in tally it will come and other entries related to it?
Mohit Verma (-) (59 Points)
08 February 2017I want to know about the accounting entries of Sole Proprietor's Fixed Deposit that under which head in tally it will come and other entries related to it?
Susmita Dutta, CA , CPA
(CA )
(2141 Points)
Replied 08 February 2017
It will come under the head Investment.
Journal Entry.....
1. On deposit.
Fixed Deposit A/c Dr. Rs. 5,00,000
To Bank Rs. 5,00,000
2. On accrued interest
Fixed Deposit A/c Dr . Rs. 5,000
To Accrued interest. Rs. 5,000
3.On Maturity
Bank A/c Dr Rs. 5,05,000
To Fixed Deposit. Rs. 5,05,000
Mohit Verma
(-)
(59 Points)
Replied 09 February 2017
But Mam on checking the other forums on this website I saw that F.D. A/c will come under the Deposit(Assets) head in tally. And entries related to its interest are in this way-
1. Accrued Interest A/c Dr.
To Interest A/c (being interest on F.D. is accrued)
And on maturity:-
2. Bank A/c Dr.
To F.D. A/c
To Accrued Interest A/c
(being F.D. is matured and amount received)
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