SIMPLE OUTSTANDING INTEREST CALCULATION

SIMPLE OUTSTANDING INTEREST CALCULATION

If a businessman takes loan from any bank then the bank charges interest on the taken loan. If the businessman refunds the loan by instalment then the bank charges same interest on instalment. It is called Simple Outstanding Interest Calculation.

Example:-

Milton Company takes loan of Rs. 1,00,000 from PNB Bank on 1-Apr-2014. The loan is divided into for equal instalments, rate of interest on loan is 10 %.

Company paid all the instalments in 4 months.

Record the above transaction.

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).

First, create ledger of PNB.

Press “enter” on “yes” and a box will be open, fill as follow:-

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

Now create ledger of Interest.

Press “enter” on “yes” and a box will be open, fill as follow:-

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

Now do voucher entry as follow:-

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

Now press “F5” to open Payment Voucher.

Press F2 and change the date:-

And now fill the voucher as follow:-

This entry will be done three times more and press F2 to change date as follow:-

Now 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.

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 “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:-

Again 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).

Here, select “Interest Payable” from Voucher Class List and the voucher will be open as follow:-

Now create ledger of interest payable as follow:-

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

Again do voucher entry for payment of interest.

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.