Fixed assets

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Querist : Anonymous

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Querist : Anonymous (Querist)
29 February 2012 if a company purchase a car on loan. then should the interest amount paid on such loan be capatalised????????
e.g. cost of car 500000
Interest paid on such loan 50000.

what would be the capatalised amount????

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Guest (Expert)
29 February 2012 The above interest needs to be charged to Profit & Loss A/c. The interest cannot be capitalised.

29 February 2012 Agree with Experts.
It will hit P & L ac so no need to capitalise the same.

Thanks
Mihir Doshi

29 February 2012 Fixed Assets A/c Dr.
To Bank Loan

Bank Loan A/c
Interest on Loan A/c
To Bank

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 April 2012 Thanks to all


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