AS 16 on WIP
This query is : Open
11 March 2011
Sir
A Co. has taken a Term Loan for Constructing a Building. The borrowing cost is being incurred from Jan 2011 at the rate of let us say 50000 per month. Again assuming that the firm is not going to put the asset in use till the end of Accounting year ended 31.03.2011. So plz tell me wat to do in this regard as per AS 16 Borrowing Costs. Also, If there is no requirement to Capitalize the Int. cost, then wat would be the Journal Entry for Int. Cost incurred ?
A Co. has taken a Term Loan for Constructing a Building. The borrowing cost is being incurred from Jan 2011 at the rate of let us say 50000 per month. Again assuming that the firm is not going to put the asset in use till the end of Accounting year ended 31.03.2011. So plz tell me wat to do in this regard as per AS 16 Borrowing Costs. Also, If there is no requirement to Capitalize the Int. cost, then wat would be the Journal Entry for Int. Cost incurred ?
11 March 2011
capitalisation of borrowing cost is up to the qualifying assets is ready to use or ready to sale.
we are not consider whether assets put to use or not.
we are not consider whether assets put to use or not.
Message likes :
1 times
11 March 2011
sir
plz tell me the answer of 2nd quetion regarding jornal entry....if AS 16 not applicable ? but the asset will be ready to use in next yr...so should i t/f int. to p/l this yr ?wat will be the treatment next yr ?
plz tell me the answer of 2nd quetion regarding jornal entry....if AS 16 not applicable ? but the asset will be ready to use in next yr...so should i t/f int. to p/l this yr ?wat will be the treatment next yr ?
11 March 2011
Assets a/c Dr.
to interst
(capitalisation of borrowing cost)
P&L a/c Dr.
to interst
(being interst charged to p&l a/c as revenue expenditure)
Assets a/c Dr.
to interst
(capitalisation of borrowing cost)
P&L a/c Dr.
to interst
(being interst charged to p&l a/c as revenue expenditure)
Message likes :
1 times
12 March 2011
Let me clarify my question-
Suppose a co. has taken T/L in Jan 2011 on wich int. is incurred @ 20000/month till 31.03.2011.
The machinery is under progress as on 31.03.2011. So, wat to do of int. in this case ? Should i capitalise ?
if no, then should i T/f the intt. To P/l A/c ?
Suppose a co. has taken T/L in Jan 2011 on wich int. is incurred @ 20000/month till 31.03.2011.
The machinery is under progress as on 31.03.2011. So, wat to do of int. in this case ? Should i capitalise ?
if no, then should i T/f the intt. To P/l A/c ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
Trending Online Classes
CAclubindia
