Dear Sir,
we paid the amount for machinery from working capital Amount. like 17 Lacs Still the machinery is not capitalised
Bank charge interest for wcdl and this amount we transfer in CWIP.
after 6 months we have to paid WCDL amount from Bank CC account and we also this interest amount transfer to CWIP.
now at present our CC limit is below 17 lacs like 8 lacs every time our CC limit utilisation is above 25 lacs and in few months CC Limit utilisation will be 25 lacs
can you pls guide what is the treatment of interest capitalise for the month and for future
CAclubindia
