Interest Calculation in Tally Prime

Interest calculation in tally is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments. Interest can be calculated on the basis of Simple or Compound Interest.

  • Simple Interest: –

This is calculated on the principal amount at a certain specified rate for a specified period.

  • Compound Interest: –

This is calculated on the principal amount + interest amount of last year at a certain specified rate for a specified period.

Interest figures are typically desired in the following situations:

  1. On outstanding balance amounts
  2. On outstanding bills/invoices/transactions (Receivable and payable)

Step for creating interest calculation on Purchase Voucher

  1. Activating Interest calculation
  2. Ledger Creation
  3. Voucher Creation
  4. Purchase
  5. Payment
  6. Credit note (Interest Payable)

   

1) Activating interest calculation in tally prime

Gateway of Tally—–>F11 Features —–> Accounting

  • Enable Interest Calculations: – Yes          

   

2) Ledger Creation

Create following ledger: –

  1. Interest receivable —–>indirect income
  2. Interest payable—–> indirect expenses

Note: – While Creating Ledger for Purchase or Sales party Activate Interest Calculation.

3) Voucher Creation

Create following Voucher: –

Gateway of tally ——> Create ——> Voucher Types

  • Name: – Interest payable
  • Select type of voucher: – Credit note
  • Name of Class: – Simple interest
  • Use class for interest accounting: – Yes

Gateway of tally ——> Create ——> Voucher Types

       Name: – Interest Receivable

  • Select type of voucher: – debit note
  • Name of Class: – simple interest
  • Use class for interest accounting: – Yes

Interest calculation on Purchase Voucher

Assignment 1: –

On 1-4-2019 Company Purchase 15 nos of HCL Computer from Novelty Stores for Rs. 10,000 each on credit basis with bill No novelty/001.

Company paid the total amount in two instalments therefore charged 5 % annual interest on it Show the report of total interest Paid and also pass the credit note entry.

Assignment 2: –

On 1-5-2019 Company Purchase 20 nos of Dell Keyboard from Anupam Stationary for Rs. 500 each on credit basis with bill No. Anupam/001.

Company paid the total amount in three instalments therefore charged 6 % annual interest on it Show the report of total interest Paid and also pass the credit note entry.

Assignment 3: –

On 1-6-2019 Company Purchase 40 nos of Dell mouse from Shivam Stationary for Rs. 500 each on credit basis with bill No. shiv/001.

Company paid the total amount in three instalments therefore charged 10 % annual interest on it Show the report of total interest Paid and also pass the credit note entry.

Interest calculation on Sales Voucher

Assignment 1: –

On 1-7-2019 Company sold 3 pieces of HCL Computer to Tulsi & Co for Rs. 11,000 each on credit basis with bill No. tulsi/001.

Tulsi & Co decided to divide the total amount in three instalments therefore charged 6 % annual interest on it by company. Show the report of total interest received and also pass the debit note entry.

Assignment 2: –

On 1-6-2019 Company sold 15 nos of Dell Keyboard to Pooja & Co for Rs. 600 each on credit basis with bill No. pooja/001.

Pooja & Co Pay the total amount in Four instalments to the company therefore charged 8 % annual interest on it. Show the report of total interest received and also pass the debit note entry.

Assignment 3: –

On 1-9-2019 Company sold 15 nos of Dell Mouse to Shruti & Co for Rs. 600 each on credit basis with bill No. shruti/001.

Shruti & Co Pay the total amount in two instalments to the company therefore charged 7 % annual interest on it. Show the report of total interest received and also pass the debit note entry.