Expenses to be capitalized

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2015 My Business commercial production Started on 15 of Mar 2015 and have availed loan from Bank before commercial production started.Bank has charged Interest on 30.03.2015 of Rs.145000 forthe month of March.(Loan availed in the month of Feb 2015) PLease help whether i have to completely capitilize the said amount or i have to split the amount

Guest

Guest (Expert)

08 July 2015 Yes you have to split the amount in to parts.Interest upto the dete of commercial production will be capitalized and from 16.03.2015 to 31st march is charged to p&L account