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Accounting entry for fixed deposit

Asked Dec 30, 2009, 10:35 AM — 2 Answers
What should be the accounting entry at the time of placement and maturity of fixed deposit?

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ROLCAM's Avatar
ROLCAM Posts: 1,437, Reputation: 250
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#2

Dec 30, 2009, 05:07 PM
Placement.

DEBIT Fixed Deposit Account.
CREDIT Bank Account.

Being placement of fixed deposit.

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Maturity.

DEBIT Bank Account.
CREDIT Fixed Deposit Account

Being the maturity of a fixed deposit.

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morgaine300's Avatar
morgaine300 Posts: 6,564, Reputation: 1474
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#3

Jan 4, 2010, 08:05 PM
Um, I would hope you're getting interest on that, no?, in which case the second entry will include a credit to Interest Revenue. You can also accrue the interest as it's applied to your account, but there will probably be some when it matures as well.
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