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interest on borrowed loan

1165 views 5 replies

Kumar Gaurav

Going...to be C.A soon...

1624 Points Joined June 2007

respected all,

if a company borrowed loan for purchasing of a machinery and paid interest for that and interest debited to machinery account still two years back.can company shows that.or if a company borrowed loan for manufacturing of machinery than..........

thanks

Replies (5)

Miss Komal Mantri

Chartered Accountant

1974 Points Joined March 2007

if loan is taken for purchasing any machinery then for Income tax purpose interest upto the machinery is put to use shall be debited to machinery account and interest for rest period shall be debited to p/l account
In case of manufacturing of p/m the same provisions shall apply...

Ravikumar.G

Consultant

18525 Points Joined March 2007

Further, refer AS 16 "Borrowing cost" - How to treat Interest in the financial statements. It is very much available in our files portal.

Kumar Gaurav

Going...to be C.A soon...

1624 Points Joined June 2007

please provide notes on AS-16,4 and 5 and tell me which are important AS & AAS

Miss Komal Mantri

Chartered Accountant

1974 Points Joined March 2007

u ll find all AS and AAS in the files section of this site....u r appearing in CA final or inter ....as important AS and AAS are different for inter and final...

Miss Komal Mantri

Chartered Accountant

1974 Points Joined March 2007

u ll find all AS and AAS in the files section of this site....u r appearing in CA final or inter ....as important AS and AAS are different for inter and final...