recurring deposit comes under which head Please tell me with explanation
Recurring deposit will comes under Deposit ( Asset) Head. Recurring deposits are the savings through regular monthly deposits of fixed sum over a fixed period of time. Hence RD is a current asset.
An RD cannot be an investment because the nature of an investment is ‘a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit’.
RD cannot be sold, so we can put it under Deposit.
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