Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Borrowing Cost

Others 524 views 3 replies

nikhil.r.gondhalekar

articled assistant

64 Points Posted on 17 February 2010

borrowing   Date of borrowing Amt    purpose        brrowing Exp

15% loan     01.01.2001             6L      general              50000

14.5% loan 01.07.2001            4L       P&M                  20000

14% loan      01.10.2001            5L     general               40000

Qualified assets-
Factory shed-1L, P&M-9L ,other FA- 1L
Project gets completed on 01.01.2002. what is the amt to be capitalised for the F.Y 2001-02

Replies (3)

First!!!!

student

162 Points Posted on 18 February 2010

Capitalise all the interest upto 01.01.02 and capitalise it to the respctive assets

nikkhil sonni

student

67 Points Posted on 18 February 2010

i agree wht abcdef

just calculate urself

calculate the intrest & add it to their respective assets

nikhil.r.gondhalekar

articled assistant

64 Points Posted on 18 February 2010

but I want specific answer-

1)for how many months specific borrowing will be capitalised. (6 or 9)

2)how whtd avg rate for general borrowing to be calculated? for how many months,it will be capitalised?? is there any limit for interest be capitalised ??or all exp*rate*9mths

3)how much of borrowing exp to be added??

it would be very nice of u,2take trouble & calculate it for me.

thanx