INTEREST ON CAPITAL

Reference

 A businessman invests cash in his business. Sometimes the businessman has to pay interest on that amount then it is called Interest on Capital.

It comes under Indirect Expenses for business.

Example:-

A businessman started business with cash Rs. 1,00,000. Interest on capital is 10 %.

Do the voucher entry.

To maintain:-

Create a company and then create ledger as follow:-

Path for ledger creation:- G.O.T. (Gateway of Tally)--> accounts info--> ledger--> create (single).

After that, do voucher entry as follow:-

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

Now do adjustment entries:

Create adjustment ledger as follow:-

Path for adjustment ledger creation:- G.O.T. (Gateway of Tally)--> accounts info--> ledger--> create (single).

And then do voucher entry:-

Path for adjustment voucher creation:- G.O.T. (Gateway of Tally)--> accounting voucher--> F7 (Journal Voucher).

View the profit and loss report:-

Path for view profit and loss report:- G.O.T. (Gateway of Tally)--> Profit & Loss a/c.

Now view the balance sheet report as follow:-

Path for view Balance Sheet:- G.O.T. (Gateway of Tally)--> Balance Sheet.

Press “Alt + F1” for more details.