Stamp duty Paid for Mortgage & Hypothication :Ledger Head??

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sushil (Querist)
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27 February 2011 Dear Experts,

ours is a pvt ltd company, we have paid stamp duty in the form of franking amounted to Rs.1,10,000/- towards Mortgage & Hypothication of plant & machinery in favour of bank.

What will be the ledger head

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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01 March 2011 Open a head called "stamp duty for mortgage" under Finance cost.

If the loan is taken for the purpose of acquiring the P&M, then it will require capitalisation.