CA Sunil Kumar Dudeja (Student) (135 Points)
03 August 2012Hello Everybody,
I have an query regarding Interest on Loan reimbursement for Heavy vehicle.Suppose
Date of Loan:-13.06.2011
Date of Put to Use:-06.07.2011
Date of Ist Instalment Paid:-01.08.2011
My Question is That whether Interest Paid on This is to be Capitalise or treated as P&L Expense.
Give Your Answer with Supportive Reason.
Thanks in advance,
Sunil Kumar Dudeja
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 03 August 2012
Interest shall be expensed out to P&L after installation of machinery & putting it to use. So in your case it shud be debited to P&L & need not be capitalized.
CAclubindia
