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How do I renew FDs to handle the accounting?

edited October 2013 in Accounting
I have two bank FDs in PMS, one is closed and the 2nd one is renewed from the net amount received on maturity of the first FD. 

How do I handle this in Accounts since the proceed for the maturity of the first FD did not come to my bank account but was used to create another FD.
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  • edited October 2013
    1. Double click on the first FD (in this example that is HSBC - 30 Day FD) select Withdrawal since this FD has matured.

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    2. Enter the princpal amount, interest and TDS info. The Net Amount is the same amount you will enter when you create a new FD.

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    3. Create the 2nd FD (in this case HSBC - 60 Days). Make the amount the same as the Net Amount from above and the same date as the Withdrawal date. Once you save the transaction, double click on the FD from the summary screen. Then right click on the transaction and select "Mark the Transaction as FD close and renewed"

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    4. Then select the name of the FD which you had just withdrawn money from (in this case HSBC - 30 Days).

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    5. Now you will notice the name of the FD where you had transferred the money from.
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    6. Below is what your accounts will look like:
    image
  • How do I do the following.

    1. Renew an FD where FD Interest was PAYOUT.
    2. Where FD Number remains the SAME after renewal (Most Private Banks Use this Method)

    Sincerely
    Dhawal Vora.
  • 1. It does not matter if the interest is pay-out or cumulative. The net withdrawal amount from FD1 should be the same as investment amount in FD2. Follow the same process explained above.

    2. MProfit needs different FD number for each FD. You can add date after the FD number to make it unique for each FD.
  • Point No. 2 is Understood.

    Point No. 1
    In Interest PAYOUT, the Interest Amount Less TDS (if Any) will be posted to the Bank and the Original Principal Amount will be Renewed (NOT: Principal + Interest - TDS)
  • I will explain with example:
    FD 1 - Investment - 10,000
    Interest Payout - 1000
    TDS - 100
    Net Interest Payout - 900 (which will be credited to bank)

    Now enter one withdrawal entry in FD1 with only principal amount of 10,000/- (as interest payout entry is already done)
    Now create another FD2 with the same amount of 10,000
    Mark withdrawal amount of 10,000/- of FD1 as 'Mark the transaction as FD close and renewed' and link the corresoponding investment transaction of FD2. This will create JV in accounts as Debit FD2 - 10,000 and Credit FD1 - 10,000

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