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.