Abc comonay has obtained a bank of RS.20 million on 01st april 2016 at the interest rate of 15% per annum to construct a plant.the construction of the manufacturing plant has been started on 01 st may 2016 and completed on 31st march 2107.the un-used amount of the bank loan was temporarily invested and earned an interest income of RS.300,000/- during the yer ended 31st march 2017 You are required to:compute the borrowing cost that could be capitalized on the new manufacturing plant as at 31 st march 2017.

Abc comonay has obtained a bank of RS.20 million on 01st april 2016 at the interest rate of 15% per annum to construct a plant.the construction of the manufacturing plant has been started on 01 st may 2016 and completed on 31st march 2107.the un-used amount of the bank loan was temporarily invested and earned an interest income of RS.300,000/- during the yer ended 31st march 2017 You are required to:compute the borrowing cost that could be capitalized on the new manufacturing plant as at 31 st march 2017.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...

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