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With Tally.ERP 9 you can obtain reports on interest calculated based on the Interest calculation on outstanding balances is allowed for any ledger account. Open tally 9 , and go to features F11 button and click it and yes in the front of activate interest calculation and advance parameters . After doing this1. Go to Gateway of Tally > Accounting Voucher > Crtl+F9 : Debit Note . > select Simple Interest from Voucher Class List . · 2. Debit the Party ledger. · 3. Interest calculation in tally erp9 made easy in latest versions. Tally has the option to use simple mode interest calculation and advance mode interest Interest on outstanding balances can also be calculated transaction-by-transaction. Gateway of Tally > Alter > Ledger > select the bank ledger > and press Enter