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-   -   Accounting entry for fixed deposit (https://www.askmehelpdesk.com/showthread.php?t=429680)

  • Dec 30, 2009, 11:35 AM
    romagopalani
    Accounting entry for fixed deposit
    What should be the accounting entry at the time of placement and maturity of fixed deposit?
  • Dec 30, 2009, 06:07 PM
    ROLCAM

    Placement.

    DEBIT Fixed Deposit Account.
    CREDIT Bank Account.

    Being placement of fixed deposit.

    --------------------------------------

    Maturity.

    DEBIT Bank Account.
    CREDIT Fixed Deposit Account

    Being the maturity of a fixed deposit.

    --------------------------------------
  • Jan 4, 2010, 09:05 PM
    morgaine300

    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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