Fixed deposit entry in Tally Prime

How to make Fixed deposit entry in Tally Prime

How to make Fixed deposit entry in Tally Prime

What are Fixed deposit ?

Fixed deposit is an investment instrument which allows investors to put their idle money into and turn it into guaranteed returns

Make a fixed deposit with the bank Rs 100000 Interest receivable Rs. 10000 per annum. Fixed Deposit mature after three years.

Journal Entry for the above will 

Fixed Deposit A/c

100000

    To Bank A/c

      100000

(being fixed deposit made with tha bank

At the end of accounting year I year

We have to make entry of interest earned (Accrued Interest on FD)

Accrued Interest on FD A/c

10.000

    To Interest on FD  A/c

      10,000

(being interest  fixed deposit

Similar entry in II year

Accrued Interest on FD A/c

10,000

    To Interest on FD  A/c

      10,000

(being interest  fixed deposit

On maturity of Fixed deposit

Bank A/c Dr

130,000

    To Interest on FD  A/c

      10,000

 To accrued interest on FD A/c

       20,000

 To Fixed Deposit A/c

       100,000

Ledger creation for Fixed Deposit in Tally Prime

  • Go to the gateway of tally prime >Create > ledger In name Type: Fixed deposit 
  • Under: Fixed Deposit
  • save the ledger / Ctrl+A
Fixed deposit ledger in Tally Prime

Similarly, create a ledger of Bank 

Go to the gateway of tally >ledger>Create

  • Type Name: Bank
  • Under: Bank
also create ledger Interest on FD
  • Type : Interest on FD 
  • Under : Indirect Income 
    Create ledger Accrued interest on FD
  • Type : Accrued Interest on FD
  • Under :Current Asset

As shown in the picture bellow.

interest on FD
accrued interest on FD

Go to gateway of tally >accounting voucher > F5 payment create entry of FD .

Fixed Depsit Account Dr 100000

   To Bank A/c                            100000

(being Fixed deposit made with the bank)

Accrued Interest on Fd entry in Tally Pime.

Accrued Interest on FD is Current Asset means income earned but not received therefore it will be shown at end the accounting year .

Go to gateway of tally > accounting Voucher > F7

Accrued interest on FD A/c   10000

   To interest on FD A/c   10000

(being interest on FD earned but not receive)

 

Simialry create entry in the next year /

On date of Maturity FD entry

Go to gateway of tally > accounting Voucher > F7

On maturity of Fixed deposit

Bank A/c Dr

130,000

    To Interest on FD  A/c

      10,000

 To accrued interest on FD A/c

       20,000

 To Fixed Deposit A/c

       100,000

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