Capitalisation of interest towards value of land.
This query is : Resolved
28 February 2012
Dear Friends,
I have taken a loan from an individual of Rs 500000 for purchase of land( Capital Asset).Now, I want to capitalise its interest towards value of land and claim it as Cost of Improvemen year on year.
Can I do it.
If not what are the other alternatives available.
Thanking you in hope of sooner response.
I have taken a loan from an individual of Rs 500000 for purchase of land( Capital Asset).Now, I want to capitalise its interest towards value of land and claim it as Cost of Improvemen year on year.
Can I do it.
If not what are the other alternatives available.
Thanking you in hope of sooner response.
08 April 2012
Yes you can do it whatever interest accrued on the loan can be capitalised to the cost of land and this can be done by passing the entry Land Cost Dr. and credit the person who has given the laon and in the narration you mention the interest @... capitlised.
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