Interest Calculation for Closing Balance in Tally

Enabling Interest Calculations

To enable interest calculation

1. Click F11 > F1(Accounting Features).

2. Set the option Activate interest calculation to Yes.

3. Press Ctrl + A to save the Company Operations Alteration

Calculating Interest transaction-by-transaction

Interest calculation can be done Closing Balance for accounts grouped under Sundry Debtors and Sundry Creditors.

To activate interest calculation for party ledgers

1. In the party ledger alteration screen, set Activate interest calculation? To Yes. The Interest Parameters screen appears.

2. Enter the rate of interest in the field Rate.

3. Select the Interest Style, as required. The rate of interest will be calculated on the basis of the interest style applied.

You can get a report on the Ledger balances for the interest calculated.

1. Go to Gateway of Tally > Display > Statements of Accounts > Interest Calculations > Ledger

The Ledger Interest report appears as shown below:

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