A ltd. company engaged in manufacturing of radiator (a part of transformer) It has incurred huge expenditure on construction of building and machinery. The company has borrowed fund from the nationalized bank for such purpose and capitalized the interest on the borrowed fund. But there is contradiction in the view of internal as well as statutory auditor. According to statutory auditor, the part of fund which is utilized for construction of machinery should not be capitalized as in the standard the term “ready to use” is given instead of “Put to use”. Whereas internal auditor opined that it should be capitalized because the standard has clearly mentioned that construction of qualifying asset must be in progress hence it is not available for put to use.
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A Public limited Co. has earned a profit of Rs.20 crore on sale of its various fixed assets( mainly land and building). How can the same be accounted for? Can it be transferred to Capital reserve? Are there any provisions regarding such transfer?

I am CA Final student,I am in great confusion about the four accounting standards issued by institute,these are AS.13,AS.21,AS.23 and AS.27.How do we correlate these accounting standards in practical and examination situations,what are differences between these standards,I've read these standards number of times but I cannot understand the effect of these standrads.I have worked out number of problems from sudy material .Please Help Me

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