You can get a report on the Ledger balances for the interest calculated.
Go to Gateway of Tally> Display> Statements of Accounts> Interest Calculations> Ledger
Select Account E.g. Bank Loan Account.
Interest is re-calculated with every change in balance outstanding. The Cr in the interest amount should not be confused to resemble an Income. It only means that it is payable and is a Liability.
To ease interest recording, Tally.ERP 9 has an interest template, a special voucher class in Debit Note and Credit Notes.
The interest screen will appear similar to the one below:
Interest calculation on Bank Loan account