To record the fixed deposit and the interest received, you have to create two accounts in Chart of Accounts. One account must be a Fixed Deposit, which will be an Other Current Asset account (Fixed Deposit) and the other account must be an Interest, which will be an Other Income account (Fixed Deposit Interest Income). To know how to create an account, click here.
The amount deposited in the fixed deposit account can be recorded as an expense. Here’s how:
If you have received the interest for the fixed deposit amount, you can record it in Zoho Books. Here’s how:
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