Australia Journal Entries for Term Deposit Interest


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I am using Microsoft Accounting 2009 on a Cash Basis of Accounting for a Not for Profit Association. I have Rolled Over a Term Deposit and the Interest is added to the Term Deposit Value.
What are the Journal Entries to account for Interest Made and to increase Cash at Bank, by that amount.

Thank You
 
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I have come back to this again.
I now realise that I asked the question incorrectly and of course, as a result, I received the wrong answer.
The Problem Description should be My Term Deposit has matured and the generated Interest goes back into the Term Deposit.
The question should be - What are the Required Journals to account for Term Deposit Interest, without affecting Cash at Bank (Operating Account) The recording of the TD Interest is simply for Informative purposes. Thank You Asha.
 
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kirby

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From your own words, since the interest increases the term deposit the entry is:
Dr Term Deposit
Cr Interest income
In the amount of the interest earned
 

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