The Effective Date for Reconciliation is given for accounts falling under the Bank Accounts Group (or Bank OCC a/c).

By default it is the books beginning date.

This is the date from which you can reconcile your bank account in your books with the bank statements. Normally, it would be the books beginning date.

Closing stock values have to be specified when accounts and inventory are not integrated. Tally allows you to specify closing stock values even if your books are integrated. It would simply ignore the specified figure so long as you maintain the integration. If and when you select to separate the books, the specified values would automatically be considered.

To enter the closing stock as on a specific date, you must alter the ledger account. Simply follow the ledger alteration procedure or go from the Balance Sheet via Current Assets.

The Group Interest Calculation statement is a list of all accounts and sub-groups belonging to the selected group that displays the current balance in each account or sub-group and the total interest.

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

Select a Group, Eg. Loans (Liability

You can calculate interest on each invoice for the period it is outstanding, wholly or partly. Transaction by transaction or bill-by-bill interest calculation is permitted for 'Party' accounts like accounts falling under the groups Sundry Debtors and Sundry Creditors. Bill-wise details should be active for the company and the party.

The report is similar to the Bill-wise Outstandings Statement. The last column gives the interest amount on the transaction. Press F1: Detailed to see the calculation.

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.

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'.

Please refer to Advanced Usage for specifying closing stock values.

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.