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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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