Hi,

Kindly help me fixed deposit of 100000/- kept against the bank guarnteee , tell me what is the journal entry for the same & interest on the & in the balance sheet where it will reflect

Interest on the fd shall we show as a part of income & what is the journal entry for the same

Thanks

Sonal
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[email protected]

One posting will suffice, thanks.

Also, we don't email answers. All questions and answers remain in the forums so that others can answer them or read them.

I'm not really understanding your question very well. Do you mean like a compensating balance? Like a balance you have to keep as a stipulation for something? That's just a normal bank account, an asset. If the thing it's stipulated for is long-term, then it needs to be a non-current asset. I don't know whether you're looking for the entry to deposit the money (which would just be crediting out of wherever the money came from and debited into this new account), or whether you're trying to do something else.

I don't understand about the interest either. Are you talking about interest you are earning on this account? You would debit the account and credit interest revenue.

Since the account is an asset it's on the balance sheet. Any interest would be on the income statement.

If that doesn't answer you question, please clarify in careful English what you're trying to ask.