INTEREST ON DRAWING

INTEREST ON DRAWING

When a businessman withdraws cash from the business for personal use then it is called Drawing. Sometime the business charges interest on that drawing then it is called Interest on Drawing.

It is Indirect Income for business.

Example:-

A businessman withdraws cash Rs. 70,000 from business. Interest on Drawing is 10 %.

Do the above voucher entries.

To maintain:-

Create a company and then create ledger as follow:-

Path for ledger creation: - G.O.T. (Gateway of Tally)--> accounts info--> ledger--> create (single).

After that, do voucher entry as follow:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> accounting voucher--> F5 (Payment Voucher).

Now do adjustment entries:

Create adjustment ledger as follow:-

Path for adjustment ledger creation: - G.O.T. (Gateway of Tally)--> accounts info--> ledger--> create (single).

And then do voucher entry:-

Path for adjustment voucher creation: - G.O.T. (Gateway of Tally)--> accounting voucher--> F7 (Journal Voucher).

View the profit and loss report:-

Path for view profit and loss report: - G.O.T. (Gateway of Tally)--> Profit & Loss a/c.

Now view the balance sheet report as follow:-

Path for view Balance Sheet: - G.O.T. (Gateway of Tally)--> Balance Sheet.

For more information press “Alt + F1”.