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Capitalization of interest during construction

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(Querist)
03 September 2024 When a company borrows Term loan from Bank and capitalize the interest during construction , so one side the value of fixed asset increase but on liability what amount increases? whether Bank Term Loan will get increased or other liability increases?
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
03 September 2024 Till the interest amount is not paid, the bank loan gets increased.
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