I have deposited an amount as fixed deposit. How do I record this fixed deposit amount and its interest received in Zoho Books?

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:

• Go to Purchases on the left sidebar and select Expenses.
• Click + New in the top right corner of the page.
• Select Expense Account (Fixed Deposit in this case).
• Enter the necessary details.
• Click Save.

If you have received the interest for the fixed deposit amount, you can record it in Zoho Books. Here’s how:

• Go to Banking on the left sidebar and select the bank account in which you want to record this amount.
• Click Add transaction and select Other Income.
• Select Fixed Deposit Interest Income under From Account.
• Enter the amount and provide description.
• Click Save.