Interest Calculation in Tally Prime Notes, Step by Step guide for self study. Interest is a legitimate return on money invested and chargeable in the business world on loans and also on delayed payments. Interest can be calculated on the basis of Simple or Compound Interest. Today, we will learn, activate interest calculation in Company and Sundry Debater Ledger. Further, check the interest amount at a particular date.

**Activate Interest Calculation in Company**

**F11 : Company FeaturesShow More Features : YesShow all features : Yes**

**Accounting : **Activate interest calculation

**(Yes)**

**Activate Interest Calculation in Sundry Debtor Ledger**

**Create Ledger** Ledger Name : ABC Pvt Ltd

Under : Sundry Debtors

Maintain bill by bill : Yes

Default Credit Period : 40 days

Check for credit day during voucher entry : Yes

Activate Interest calculation : Yes

New Window : Interest Parameters

Press F 12: Configuration

Use Advance Interest Parameters : Yes

Calculate Interest Transaction by Transaction: Yes

Rate 15 % per 365 days on Debit balance Only

Applicability : Past Due Date by 0 Days from Due Date of Invoice

**Purchase Entry : Voucher > Purchase (F9)**

Party Name : Computer Traders

Item : Mouse, Quantity : 20 Pcs, Rate : 150, Amount 3000

**Sales Entry : Voucher> Sales (F8)**

**Sales Entry**

Reference no.: 001

Party A/c name ledger: ABC Pvt Ltd

Sales ledger: Sales ( Create by pressing Alt+C, if not available)

Name of Item | Quantity | Rate | Amount |
---|---|---|---|

Mouse | 12 Pcs | 160 | 1920 |

Total | 12 Pcs | 1920 |

**How to Check Interest Receivable**

**Display > Statement of Accounts > Interest Calculations > Interest Receivable**

**Change Period to find the Interest on a Specific date : **F2 : Period

**Change Period :**From : 1-4-2021 To : 1-3-2022

Opening Amt | Pending Amt | Interest |

1920 | 1920 | 231.98 Dr |

12-May-2021 1-Mar-2022 294 Days 15% 231.98 Dr

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