How to record Loan EMI & Loan Interest in Tally.ERP 9?
In Tally.ERP 9 Accounting Software we can record the EMI (Equated Monthly Installments) and Interest of a Loan transactions. After a Loan like Personal Loan, or Housing Loan is taken from the Financial Institutions like Banks or Credit Societies we have to pay the EMI (Equated Monthly Installments) for every month until the Loan Term is closed, which contains the Interest and Principal amounts .
As we pay the Loan EMI we can record that in Tally.ERP 9 Accounting Software but in order to know the Interest on Loan we must obtain the Loan Statement from the Credit providers in which we can find out the Loan Interest and Principle amount separately.
In order to record the EMI Payment for the Loan use the Payment Voucher Type
- Credit either Cash or Bank Account Ledger
- Debit the Loan Account.
- Enter the amounts and save the screen.
And to record the Interest on Loan we can use the Journal Voucher Type
- Debit the Indirect Expense ledger i.e., Interest on Loan A/c.
- Credit the Loan Account.
- Enter the amounts and save the screen.
And this is how to record the Loan EMI repayment and Interest on Loan transactions after the Loan Reimbursement transaction recorded in Tally.ERP 9.
July 2, 2016 @ 12:00 PM
Tell for which transaction that went wrong?
Under which Groups you created the Ledgers?
How you passed the entry in Tally.ERP 9?
Finally, what is the mistake that you found in Tally.ERP 9?
July 2, 2016 @ 11:56 AM
Did the mentioned entry. Went wrong. Why so?
January 28, 2017 @ 9:00 AM
say under which groups the ledgers should be created?
January 28, 2017 @ 9:13 AM
Mr. Raza Ali,
Read the article clearly.
August 17, 2017 @ 6:39 AM
Hi. I am new for tally. Need some some help regarding vehicle, insurance premiums etc. Which group i have to create for all this
August 17, 2017 @ 6:40 AM
Either select Capital or Indirect Expenses based on the Business Nature.