COMPOUND OUTSTANDING INTEREST CALCULATION

COMPOUND OUTSTANDING INTEREST CALCULATION

If a businessman takes loan from any bank, then interest is charged on outstanding balance.

If the businessman refunds the balance by instalment, then the bank charges different rate of interest on all instalments. It is called Compound Outstanding Interest Calculation.

Example:-

A businessman takes loan of Rs. 1,00,000 from PNB. He decided to refund the loan in four equal instalments. The bank charges different rates of interest that is 10%, 12%, 15% and 18% per 30 days.

Calculate the interest and record the above transactions.

To maintain:-

First of all create a company and then activate interest calculation and debit/credit note as follow:-

To Activate Interest Calculation and Debit/Credit Note: - G.O.T. (Gateway of Tally)--> Press F11 (Company Features)--> Press F2 (Inventory Features).

Now create ledger as follow:-

Path for ledger creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Ledger--> Create (Single).

After that do voucher entry:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Accounting Voucher--> Press F6 (Receipt Voucher).

Now press F5 for Payment Voucher.

And then press F2 to change the voucher dates follow:-

Now view the interest ledger of PNB as follow:-

Path for view interest calculation: - G.O.T. (Gateway of Tally)--> Display--> Statement of Account--> Interest Calculation--> Ledger--> PNB.

Create voucher type as follow:-

Path for voucher type creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Voucher Type--> Alter.

When you will press “enter” key on “Alter”, a list of voucher types will be open. You will select there “Credit Note” as follow:-

Press “enter” key on “Credit Note” and a form will open, fill as follow:-

After that press “enter” key and then as follow:-

Press “enter” key.

Accept the voucher by pressing “enter” key or “y”.

Now again do voucher entry as follow:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Accounting Voucher--> Press Ctrl + F8 (Credit Note).

Press “enter” on “Interest Payable” and the voucher will be open as follow:-

Do voucher entry for payment of interest as follow:-

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

You can see the interest calculation of PNB ledger as follow:-

Path for view interest calculation: - G.O.T. (Gateway of Tally)--> Display--> Statement of Account--> Interest Calculation--> Ledger--> PNB.

You can see that the above PNB ledger is blank, it means that all the interest have been paid.

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SIMPLE INVOICING INTEREST CALCULATION

SIMPLE INVOICING INTEREST CALCULATION

When a trader sales goods to any party on credit basis then he charges interest on the outstanding balance.

If the party refunds cash by instalment, then the trader charges same interest on all instalments. It is called simple invoicing interest calculation.

Example:-

Ram sold 3 pieces of HCL Computer to Arun for Rs. 10,000 each on credit basis. He decided to divide the total amount in three instalments and charge 5 % interest on it.

Maintain the above transaction.

To maintain:-

Create a company and then activate bill wise details, interest calculation and debit/credit note as follow:-

To Activate Bill Wise Details, Interest Calculation and Debit/Credit Note: - G.O.T. (Gateway of Tally)--> Press F11 (Company Features)--> Press F2 (Inventory Features).

Now create ledger:-

Path for ledger creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Ledger--> Create (Single).

Now create stock master:-

To Create Stock Group: - G.O.T. (Gateway of Tally)--> Inventory Info--> Stock Group--> Create.

To Create Stock Item: - G.O.T. (Gateway of Tally)--> Inventory Info--> Stock Item--> Create.

Now do voucher entry as follow:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Inventory Voucher--> Press F8 (Sales Voucher).

And then press F12 for configuration as follow:-

And now do the voucher entry.

Press F6 to open Receipt Voucher.

When the voucher opens, press F2 and change the date as given below:-

And then press “enter” and fill the voucher.

Accept the voucher and again press F2 and change the date.

Accept the voucher and again change the date by pressing F2 key.

View the ledger interest of Arun as follow:-

Path for view interest calculation: - G.O.T. (Gateway of Tally)--> Display--> Statement of Account--> Interest Calculation--> Ledger--> Arun.

Now create voucher type as follow:-

Path for voucher type creation: - G.O.T. (Gateway of Tally)--> Accounts Info--> Voucher Type--> Alter.

When you will press “enter” key on “Alter”, a list of voucher types will be open. You will select there “Debit Note” as follow:-

Press “enter” key on “Debit Note” and a form will open, fill as follow:-

Press “enter” after filling the name of class and then as follow:-

Press “enter”.

Accept the voucher by pressing “enter” key or “y”.

Now again do voucher entry:-

Now do voucher entry as follow:-

Path for voucher creation: - G.O.T. (Gateway of Tally)--> Inventory Voucher--> Press Ctrl + F9 (Debit Note Voucher).

Press “enter” on “Interest Receivable” and the voucher will be opened as follow:-

Accept the voucher.

After that, press F6 to open Receipt Voucher:-

Now view the ledger interest of Arun:-

Path for view interest calculation: - G.O.T. (Gateway of Tally)--> Display--> Statement of Account--> Interest Calculation--> Ledger--> Arun.

You can see that the ledger interest of Arun is blank. It shows that all the instalments have been paid.

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