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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 .

How to record Loan EMI & Loan Interest in Tally.ERP 9?
Loan EMI & Interest on Loan Entries in Tally.ERP 9

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

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.

is the founder of AccountsGuy.Net with the view of providing Accounting and Technical support using Accounting package Tally ERP 9, and Office Tools to the people. I write articles on Accounts, Blogging, Computer Operating, and technical issues and some of my experiences on them for students, beginners. Follow our Networks or sing-up for the email newsletter below for your daily dose of Tips and Tricks.
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{ 2 Comments... read them below or add one }

Dil Ke Lafz said...

Did the mentioned entry. Went wrong. Why so?

Venkkatesh K said...

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?

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