Home Page : TallyERP9Book.Com Click...Order Now ! Click...Order Now ! Click....Book Contents !
Connect with ...

How do I pass interest Entries? @ Tally.ERP9

Query

 

How do I enter the Interest Receivable / Payable amounts into books?

 

Or

 

The interest report shows only the interest implications, since the interest amount receivable/payable are not being entered into the books. How can this be accounted for in Tally.ERP 9?

 

Answer

 

The interest amounts calculated in different ways are shown in the Interest Calculation Report. However, these have not been brought into books and they simply give you the interest implications. You must book them if you want them to be entered into the books.

 

 

Entering Calculated interest amount

 

The calculated interest amounts are entered using the Debit and Credit Notes with Voucher Classes.

 

The Debit notes are used for the Interest receivable while the Credit Notes are used for the Interest payable.

 

Interest is calculated on a Simple or Compound basis and separate voucher classes should be used for them.

 

Set-up Debit/Credit Note Classes for Interest entries

 

We will now discuss the set up of Debit Notes, since the Credit Notes behave in the same way (in the case of Interest payable).

 

  1. Assume you have raised an invoice to your debtor ‘M/s Blue Nile Stationeries for Rs.44,200 on 1st Feb 2009 and have given a Credit Days of 20, so the invoice would fall due on 21st Feb 2009. The Interest rate is set to 12% per 365-Day Year and is calculated Transaction-by-Transaction, as shown below:
pirated tally erp 9

Let us see the accounting of interest amount for the above, if the same is treated as:

 

(a) Simple Interest

(b) Compound Interest

 

In case the interest amount is treated as Simple Interest

 

a)       Alter the Voucher Type Debit Note. Tab down to the field Class and type a class name, for example Interest-Simple

tally erp 9 study material
b)       Set Yes to Use Class for Interest Accounting? and save the voucher type
tally erp9 tutorial

c)       Create a ledger Interest Received under the group Indirect Incomes

 

d)       Debit Note Entry

 

Go to Accounting Voucher > Debit Note (Ctrl+F9) > Select the Class Interest-Simple

tally erp 9 video tutorial
e)       Say for instance, we are passing the entry on 28th April 2009, so enter the same. Debit Blue Nile Stationeries > it will automatically display the List of Interest Bills under the Interest Details pop up screen, the interest amount due as on the debit note entry date > Select the particular interest reference > Credit Interest Received and save the voucher.
tally erp 9 learning book

f)         Outstanding Statement

 

     Go to the Outstanding Statement ie, Display > Statement of Accounts > Oustandings > Ledger > Blue Nile Stationeries >

 

      You will see interest amount also added in the outstanding statement in a separate line showing the date and reference no. of the Debit Note entry passed, which gives you the total outstanding amounting to Rs.2,20,506.30 (2,20,000 + 506.30) as on 28th Feb 2009.

tally erp 9 book pdf

g)       Interest Report

     

     View the Interest calculation report as on 1st March 2009, ie, Go to Display > Statement of Accounts > Interest Calculations > Ledger > Blue Nile Stationeries > F2: Period = 1-4-2009 to 1-3-2010. Since the interest amount was charged to the party on 28th Feb 2009, interest is calculated for 1 Day and will show Rs. 72.33 as interest receivable (ie, 220,000 * 12/100/365*1 = Rs. 72.33)

cst in tally erp 9

h)       Pass the receipt entry normally as usual ie, Cr. Dynamic Computers > select the relevant pending references/bills, Credit Cash/Bank Account.

 

In case of interest amount treated as Compound Interest:

 

a)        Alter the Voucher Type Debit Note. Tab down to the field Class, and type a class name, for example Interest-Compound

Tally
b)        Set the option Use Class for Interest Accounting? and Amounts to be treated as Compound Interest? to 'Yes' and save the voucher type.
tally accounting software

c)        Create a ledger Interest Received under the group Indirect Incomes

 

d)        Debit Note Entry

 

Go to Accounting Voucher > Debit Note (Ctrl+F9) > Select the Class Interest - Compound

Tally Solutions
e)        Say for instance, we are passing the entry on 28th April 2009, so enter the same. Debit Blue Nile Stationeries > it will automatically display List of Interest Bills under Interest Details pop up screen, the interest amount due as on the debit note entry date > Select the particular interest reference > Credit Interest Received and save the voucher.
Tally Accountant

f)          Outstanding Statement

 

       Go to the Outstanding Statement ie, Display > Statement of Accounts > Oustandings > Ledger > Blue Nile Stationeries > You will see the interest amount also added to the principal amount of the bill in the outstanding statement. The Opening Amount of the bill is Rs.220000 and the Pending Amount as on 28th Feb 2009 is Rs.220506.30 (220000 + 506.30).

tally erp 9 help

g)        Interest Report

       View the Interest calculation report as on 1st March 2009, ie, Go to Display > Statement of Accounts > Interest Calculations > Ledger > Blue Nile Stationeries > F2: Period = 1-4-2009 to 1-3-2010. Since the interest amount was charged to the party on 28th Feb 2009, interest is calculated for 1 Day. It will calculate the interest on the compound value ie, on Rs.220000 + 506.30 = 220506.30 and will show Rs.72.50 as the interest receivable (ie, 220506.30 * 12/100/365*1 = Rs.72.50)

tally erp 9 price
h)        Pass the receipt entry normally as usual ie, Cr. Blue Nile Stationeries > select the relevant pending references/bills, Credit Cash/Bank Account.
 
 
 
Company Information @ Tally.ERP9
Group & Ledger

Introduction
1. THE GROUP
2. THE LEDGER
3. VOUCHERS TYPES

Advanced Inventory / Stock
Meaning
Order Processing
Re-Order Levels
Tracking Numbers
Batch-wise Details
Additional Cost Details
Bill of Materials (BOM)
Price Lists and Price Levels
Stock Valuation
Zero Valued Entries
Inventory Ageing Report
Actual and Billed Quantities
Advanced Usage of Vouchers
Maintain Bill-wise Details
Cost Center and Cost Category
Interest Calculation
Reversing Journals
Post-Dated Voucher
Memo (Memorandum) Voucher
Optional Voucher
Using Tracking Number
Tally.ERP9 Report
  1. Unit Objectives
  2. Modifying Reports (Options)
  3. Balance Sheet
  4. Profit & Loss Account
  5. Stock Summary
  6. Trial Balance
  7. Day Book
  8. Books of Accounts
  9. Statement of Accounts
  10. Inventory Books
  11. Statutory Reports
  12. List of Accounts ( Chart of Accounts)
  13. Exception Reports
  14. Printing Reports
 
Tally.ERP9 MIS and Other Reports
 
Statutory & Taxation
Utilities & Others @ Tally.ERP9
Credit Limits
Knowledge Base @ Tally.ERP9
Stock Items
Stock Groups
Inventory Masters
Inventory Vouchers
Inventory Report Statements
Balance Sheet
Accounting Reports
Accounting Vouchers
Interest Calculation
VAT-Value Added Tax
Service Tax
TDS (Tax Deducted at Source)
 

Enter your email address:
[ Get Tally.ERP 9 Questions & Knowledge Base Feed delivered by eMail ]

Delivered by FeedBurner

 
 
Disclaimer :

The names of Companies and persons used in this Website have been used for illustrative purposes only.
The visitors may visit www.tallysolutions.com , the web site of Tally Solutions Pvt. Ltd. for resolving their doubts or for clarifications

Trademark :

Tally, Tally 9, Tally9, Tally.ERP, Tally.ERP –9, Tally.Server 9, Tally.NET & Power of Simplicity are either registered trademarks or trademarks of Tally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners. This Website is not associated with any product or vendor mentioned in this Website.

GETTINGS STARTED @ Tally.ERP 9
QUESTIONS BASE @ Tally.ERP 9
REPORT GENERATES @ Tally.ERP 9
TIPS & TRICKS @ Tally.ERP9 GST for Tally.ERP9
1 > Financial Statement Report 1 > Tips & Tricks @ Tally.ERP 9 1 >Introduction to GST ( IGST . CGST, SGST )
2 > Accounts Book & Register Report 2 > FAQ's @ Tally.ERP 9 2 >Calculation of GST ( IGST, CGST & SGST)
3 > Stock Register / Reports 3 > Short Cut Keys @ Tally.ERP 9 3 > GST on Tally.ERP 9 ( With Practical Assignment )
4 > Job Costing Reports 4 > Tips-Weekly Refresher @ Tally.ERP9 4 > Generate GSTR-1 Returns / Reports under Tally.ERP9
5 > Pay Roll Register Reports   5> Status Reconciliation (GSTR-1)
6 > Point of Sale Register Reports   6 > Challan Reconciliation Report for GST Payments
     
  8 > Excise - Manufacturer      
  9 > Technology / Utilities      
 
SWAYAM EDUCATION
Mandal Bagicha, Hemkapada,
Sunhat, Balasore-756002 ( Odisha )-India
eMail ID : tallyerp9bookorder@gmail.com
Web : www.tallyerp9book.com
Mob : 09437264738
Get Updated ...
Website Designed, Hosted, Owned by : www.BalasoreCity.Com