HI
Need your assistance in letting me now how the interest amount was derived in the below answer
The question is
An amount of Rs.20,00,000/- was incurred for construction of a building and it was ready for occupation on 31.12.2011. The construction expenditure was incurred out of working capital facilities availed from the bank. Interest payable to it @ 15% p.a. The average working capital loan has never fallen below Rs.25 lakhs during the construction period. The details of expenditure incurred are as follows
July 2011 Rs.3,00,000/- August Rs.4,50,000/- September Rs.2,00,000/- October - Rs.5,00,000/- November - Rs.3,00,000/- and December - Rs.2,50,000/-.
Calculate the value of the Qualifying Asset?
Answer :
Month Expenditure on Qualifying Asset Interest Cummulative Expenditure including interest
July 2011 3,00,000/- NIL Rs.3,00,000/-
Aug 2011 4,50,000/- Rs.3750/- Rs.7,53,750/-
Sep 2011 2,00,000/- Rs.9,422/- Rs.9,63,172/-
Oct 2011 5,00,000/- Rs.12,040/- Rs.14,75,212
NOv 2011 3,00,000/- Rs,18,440/- Rs.17,93,652/-
Dec 2011 2,50,000/- Rs.22,421/- Rs20,66,073/
I dont understand why interest for July 2011 is not calculated and how the figure of 9422/- and 12040/- was calculated.
Regards
CAclubindia
