Increase of Tax Liability - Interest

To record journal entry to account for interest payable

1.     Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

2.     Click J: Stat Adjustment button. In the Stat Adjustment Details screen:

●      Select the option VAT in the Type of Duty/Tax field.

●      Select the option Increase of Tax Liability in the Nature of Adjustment field.

●      Select Interest for the option Additional Details.

3.     Press Enter to return to voucher.

4.     Debit an expense ledger created under Indirect Expenses with option Is VAT/CST Applicable? set to Not Applicable.

5.     Credit the ledger created under Current Liabilities. The completed screen appears as shown below:

6.     Press Enter to save.