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Interest Calculation Setup in Tally

The document outlines the steps for setting up interest calculation in Tally, including creating a company, ledger creation, and displaying interest. It details the parameters for interest rates and calculations for different accounts, such as SBI and Sam. Additionally, it explains how to record interest received and paid through debit and credit notes, along with voucher entry procedures.

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ammugeorgem
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33 views4 pages

Interest Calculation Setup in Tally

The document outlines the steps for setting up interest calculation in Tally, including creating a company, ledger creation, and displaying interest. It details the parameters for interest rates and calculations for different accounts, such as SBI and Sam. Additionally, it explains how to record interest received and paid through debit and credit notes, along with voucher entry procedures.

Uploaded by

ammugeorgem
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Interest Calculation

Step-1
Create company
F11 – company feature
Maintain account : Yes
Enable bill wise entry : yes
Enable interest calculation : yes
Save (CTRL + A )
Step-2
Ledger creation
1. SBI account
Name : SBI Account
Under : bank account
Activate interest calculation : yes
Interest parameter Screen
Calculate interest based on : voucher date
Rate : 10% Per: 365 days On: all balance
Opening balance :10,000
Accept

2. Sam
Name : Sam
Under :S. Debtor
Maintain balance bill by bill : Yes
Default credit period :30days
Active interest calculation : Yes
Interest parameter window
Calculate interest transaction by transaction : yes
Override parameters for each transaction : yes
Rate : 12% Per:365 days On: all balance
Accept

3. Sales (interest calculation : yes)


4. Loan account
Under : Loan (liability)
Interest calculation : Yes
Interest Parameter Screen
Rate 12% 365days on all balance
Opening balance : 1,00,000/-

5. Interest received (under: indirect Income)


6. Interest Paid (under : Indirect Expense)

Step -3
Display interest
Gateway of Tally > Display More report > Statement of account >interest
calculation >Ledger > select each ledger account
F2 Period
From 1-4-2024 To 31-3-2025 (or 31/5/2024 )
Here we can see the interest automatically calculated by tally when we
change the date.
Eg: Sold goods to Sam 10000/-
(Interest for 2 month is 10000*12%*60/365 =197.26)
Step -4
Interest received or Interest Paid

Interest received : Debit note


Interest Paid : Credit note

Interest received
GWT > Alter > Voucher Type > Debit Note
Name of Class : Simple
Use class for interest accounting : yes
Amount to be treated as compound interest: No
Repeat same for compound
Name of class : compound
Use class for interest accounting : yes
Amount to be treated as compound interest: yes
Save it.

Step -5
Voucher entry
Select Debit note voucher
Name : debit note
Class : simple
SBI Account Dr.
To interest received.
Interest paid (same steps)

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