# How to record Fixed Deposits?

In ProfitBooks this can be done as a first step, create the Fixed Deposit account. Go to Accounting > Chart of Accounts > New Account


Fill in all the details :
Enter the account name - Provide the name of new account head in Name
Select account group from the drop down - Select the corresponding group for new account head in Group drop down.
Enter the effective date - Record when fixed deposit is made.
Opening balance- Record amount of the deposit.

Click on save and its Done.

Second step is for recording of Fixed Deposits , For that user have to pass journal entries. To pass journal entry follow the below-mentioned steps:

Recording of Fixed Deposit

Step 1: Go to Accounting > Journal Entries, click on "Add New Record".
Step 2: Fill in the details like Date, Under project, if any.
Step 3: Under From Account select Fixed Deposits account and debit it with the amount and select cash/bank account and credit it with the same amount.
Step 4: Fill the description box for eg. "Fixed deposit created" and
Step 5: Click on save and it's done.

Third and last step is to made at the maturity of Fixed deposit while recording the interest on Fixed deposit , firstly create Interest From Fixed Deposits account and then user has to pass Journal Entries , follow the above same procedure for passing a Journal entry,


But under Step 3 Under From Account select cash/bank account account and debit it with the maturity amount received and select Fixed Deposits and credit it with the same amount when it is created , Select Interest from Fixed deposit account and credit it with the balancing amount i.e Interest received.

Journal entry

Click on save and it's done.

You can also read about:
How to update the start date of any account?
How to create new account?
How to Create Account Group?
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