Ask Experts Questions for FREE Help !
Ask
    romagopalani's Avatar
    romagopalani Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 30, 2009, 11:35 AM
    Accounting entry for fixed deposit
    What should be the accounting entry at the time of placement and maturity of fixed deposit?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
    		  
    #2

    Dec 30, 2009, 06:07 PM

    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.

    --------------------------------------
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #3

    Jan 4, 2010, 09:05 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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

What should be the accounting entry at the time of placement of Fixed deposit? [ 1 Answers ]

What should be the accounting entry at the time of placement and maturity of fixed deposit?

Fixed Asset Entry [ 1 Answers ]

What is the initial entry that a fixed asset will be. I have entered the invoice of the fixed asset but have had to post it to a suspense account purely because our system doesn't allow you to post directly to a fixed asset account. I now need to journal out the suspense so there is a zero...

Fixed asset entry [ 1 Answers ]

We purchased computer equipment on more than one lease in 2008. Do we have to enter each piece of equpment into fixed assets, or is it allowed to enter total for each lease?

Bank Fixed Deposit with Nomination. [ 1 Answers ]

My father made deposits in a private bank and made me as lone nominee to receive the amount. My father expired now. But bank fails to clear the amount even after maturity and require me to produce some doucments regarding legal heirs. Will it be correct.

Fixed Asset Journal Entry [ 1 Answers ]

If a company owns equipment and it is on the books as a fixed asset, then 'leases' it to a financial company for three years -- how do you record the entries? The financial company pays me $50,000 cash for the equipment. I lease / to own it back over the next three years. What would the JE be...

View more questions Search