Easy Office
LCI Learning

intrest on pre const. mach. loan

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
20 May 2011 Machinery loan is taken in pre construction period in new under construction factory. How to post that interest in books of accounts of asessee?(partnership firm)

20 May 2011 factory is not in existance but the firm is in existance on the date of loan availment, so usual treatment would go , the loan would go in liability side and interest would get debited in P.L account,

20 May 2011 In my view Interest has to be Capitalised by Debiting the Machinery A/c and Crediting the Interest A/c till the machine is put to use.


05 June 2011 Interest will be capitalized please refer two AS 10 is for Fixed Assets and other is for Borrowing cost



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries




Answer Query