How to record a term deposit placement
Transferring liquid cash into a fixed-term deposit account with a specified maturity date.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Short-term Investments (Term Deposits) | Debit | 100,000.00 | - |
| Cash | Credit | - | 100,000.00 |
💡 Accountant's Note
This entry reclassifies cash from a demand deposit (checking) to a time deposit (savings/CD) to earn higher interest.
Practitioner & Systems Framework
💻 ERP Architecture
Track maturity dates in the treasury sub-ledger to ensure proper classification as cash equivalents if under 90 days.
⚠️ Audit Flags
Early withdrawal penalties that might impair the principal value.
📄 Required Documentation
Term deposit certificate or bank confirmation letter.
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