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:
- On outstanding balance amounts
- On outstanding bills/invoices/transactions (Receivable and payable)
Step for creating interest calculation on Purchase Voucher
- Activating Interest calculation
- Ledger Creation
- Voucher Creation
- Purchase
- Payment
- 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: –
- Interest receivable —–>indirect income
- 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.