A journal voucher is created with Increase of Tax Liability as the Nature of Adjustment to adjust the increase of tax liabilty.
To create a Journal voucher for interest payable
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
Note: You can create a journal voucher from Gateway of Tally > Display > Statutory Reports > VAT > select the VAT or CST form.
2. Click J: Stat Adjustment. In Stat Adjustment Details screen,
o Select VAT as Type of duty/tax.
o Select Increase of Tax Liability as the Nature of adjustment.
o Select the option Interest in Additional Details field.
o Press Enter to return to the voucher.
3. Debit the expense ledger and enter the amount in Debit column.
4. Credit the ledger grouped under Current Liabilities.
The journal voucher appears as shown below:
5. Press Enter to save.