You can get a report on the Ledger balances for the interest calculated.

Go to Gateway of Tally> Display> Statements of Accounts> Interest Calculations> Ledger

Select Account E.g. Bank Loan Account.

Interest is re-calculated with every change in balance outstanding. The Cr in the interest amount should not be confused to resemble an Income. It only means that it is payable and is a Liability.

To ease interest recording, Tally has an interest template, a special voucher class in Debit Note and Credit Notes.

Interest Calculation reports are automatically produced if the feature is activated In F11: Features and the parameters are set for individual ledger accounts.

There are two types of reports, one pertaining to interest on balances of accounts like loans, and the other interest on overdue invoices.

Interest reports are available for individual ledger accounts as well as for Groups

The advanced parameters are particularly useful where interest rates change from time to time.

1. Go to Gateway of Tally> F11: Features > Accounting Features > Set Activate Interest Calculation to Yes. > Set Use Advanced Parameters to Yes.

2. The Interest Parameters sub-screen is displayed

   • For Ledgers created under the Group Sundry Debtors/Sundry Creditors, the Interest Parameters sub-screen is displayed as shown below:

To calculate Interest in the Simple Mode:

1. Go to Gateway of Tally> F11: Features

    

   > Set Activate Interest Calculation to Yes. > Set Use Advanced Parameters to No.

2. In the Ledger Creation screen set Activate Interest Calculation to Yes.

3. The Interest Parameters sub screen is displayed. Enter the Rate and select the interest style from the list.

Tally allows you to obtain reports on interest calculated by Tally based on the instructions you furnish. Interest figures are typically desired in the following situations:

1. On outstanding balance amounts

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

Tally gives you an exhaustive capability to obtain interest implications on both.

Information in display and alter is the same, hence only alter is discussed. Display option does not permit any modification. Alter option is accessible only to authorised users.

Gateway of Tally > Accounts Info. > Ledgers > Single Alter > select ledger

You are allowed to alter any information of the ledger master with the exception of the Closing Balance of a ledger account, if any, other than closing balance of accounts under the group 'Stock-in-hand'.

There are four methods of calculating a duty.

1. Duty Based on Items – Tax based on Item Rate

2. Additional Duty

3. On Total Sales

4. Surcharge on Tax

The information required for creating Ledgers depends on the features opted by you in the F11: Features and F12: Configure. The Ledger Creation screen will have additional fields depending on your feature settings for your company. If you set the field Allow ADVANCED entries in Masters in F12: Configure as Yes, you can work in Advanced Mode.

Set the company features in F11: Features> F1: Accounts as shown in the screen below to enable advanced features.

You can create multiple Ledgers at a time in this mode. You can first create a Ledger under each group in single Ledger mode and then the rest of the Ledgers in multiple mode. Tally will set the settings of the Ledger created as default for other Ledger to be created in multiple mode.

Go to Gateway of Tally> Accounts Info > Ledgers > Create (under Multiple Ledgers)

The Multiple Ledger Creation screen is displayed. A brief description on each of the fields in the Multiple Ledger Creation screen follows:

Ledgers can be created in single and multiple modes. In multiple mode you can create multiple ledgers at a time.

Creating a Single Ledger

The creation of Ledger depends on the features you opt for in the F11: Features of your company and F12: Configure. It is advisable to set F11: Features and configure the F12: Configure screen before creating any Ledgers. You may configure or set your Ledgers to enable or disable advanced mode.

Click here for details on Creating Ledgers in Advanced Mode.