What will be the accounting entries for the following :
Company has purchased Import Licence of Rs. 5 Cr. for Rs. 1.6 Cr from the open market (Validity 2 years). Which can be utilised for payment of import duty on capital goods only.
Case1:
What if the company utilised whole licence amount in current financial year only.
What will be the amount of Licence to be capitalised ?
Case2:
If only 50% of the licence value is utilised for the the payment of duty on import of capital goods, then what will the amount of licence to be capitalised ? and valuation for the remaining part of licence and accounting treatment ?
Case3:
What will be the accounting treatment if the whole of licence if unutilised for current financial year ?
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