Accounting treatment of interest on Drawings in Tally Prime / tally / By admin Accounting treatment of interest on drawing Tally Prime Interest on the drawing is Income for Business therefore it is shown in the credit side of the Profit and loss Account to know more go to our blog.Journal Entry of Interest on capital and Interest on Drawing in Accounting In tally, we have to create two ledgers to create Voucher entry of Interest on Drawing.Ledger Creation Of Interest on Drawing in Tally PrimeGo to gateway of tally >Create>ledger Name: Type Interest on DrawingUnder : Select Indirect IncomeCtrL+ A to save the programmeLedger Creation Drawing in Tally PrimeGo to gateway of tally >Create>ledger Name: Type DrawingUnder : Select CapitalCtrL+ A to save the programme To create voucher entry of Interest on drawing Go to the gateway of tally >voucherpress >f7 from the keyboardPress F2 to change the date Note the entry of interest on the drawing is made on 31 March every year.Dr. Drawing A/c as interest in drawing is to be added to Drawing accountCr. Interest on drawing accounts as it is income for the firm.Interest on the drawing will be deducted from Capital in the liability side balance sheet Journal Entry of Interest on capital and Interest on Drawing in Accounting