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Booking Amount in The Investment Account

The document discusses the automated accounting entries for mutual fund transactions in a legacy system. It outlines entries for booking investments, dividend reinvestment, redemptions along with dividends or gains/losses, and rounding differences upon redemption. It also summarizes the process for fixed deposits with banks which includes maintaining a borrowal deposit master, generating deal numbers, obtaining bank advices, and accruing monthly interest through journal entries.

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Fharook Syed
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37 views1 page

Booking Amount in The Investment Account

The document discusses the automated accounting entries for mutual fund transactions in a legacy system. It outlines entries for booking investments, dividend reinvestment, redemptions along with dividends or gains/losses, and rounding differences upon redemption. It also summarizes the process for fixed deposits with banks which includes maintaining a borrowal deposit master, generating deal numbers, obtaining bank advices, and accruing monthly interest through journal entries.

Uploaded by

Fharook Syed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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All the entries with respect to mutual fund accounting are automated in the

current legacy system.

 Booking amount in the investment account


MF Investment A/c Dr --------------

Respective Bank A/c Cr


-------------

 Dividend reinvestment
MF Investment A/c Dr --------------

MF Dividend A/c Cr
-------------

 MF redemption along with dividend, gain / loss if any


Respective Bank A/c Dr --------------

MF Investments A/c Cr
-------------

Gain / Loss on redemption A/c Cr / Dr ------------

 Round off of difference, if any in redemption amount received in the bank


Respective Bank A/c Dr / Cr -------------

Round Off A/c Dr / Cr ------------

Fixed deposits with Banks:

 Deposit details are entered in the Borrowal deposit Master which are
Maintained commonly for borrowal and Investment
 Internal Number is generated for each Investment as Deal Number
 Advice is generated to the bank for such Investments.
 Based on the Bank advice necessary entries will be passed in the Financial
books.
 Accrued interest on the above deposits are passed through Journal in the
financial books
at Month end

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