Term Deposit

Question

Hi&nbsp;&nbsp;We have received a term deposit back into our account less an early withdrawal fee. Normally I would simply create a general journal taking the funds out of the current asset (Term Deposit) and then straight into our Transaction account, however not sure how to account for this with the fee taken out.&nbsp;Can someone assist please?&nbsp;Thanks

lrbooks61 · Answer

Hi&nbsp;Your Journal should look like this&nbsp; e.g Term deposit was 15k fee was $30 and interest was $25 Total returned to Transaction Bank =$14995&nbsp;DR Transaction Bank&nbsp; &nbsp;$14995CR Term Deposit&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;$15000DR Bank Fees&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;$30CR Interest Received&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; $ 25&nbsp;Total DR 15025&nbsp; Total CR 15025&nbsp;Hope this helps&nbsp;Lisa

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Term Deposit

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