On 25th April, 2014, Neel Limited obtained a loan from the bank for 70 lakhs to be

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On 25th April, 2014, Neel Limited obtained a loan from the bank for ₹70 lakhs to be utilised as under:

Construction of factory shed ---- ₹28 lakhs;

Purchase of machinery ------------ ₹21 lakhs;

Working capital ----------------------- ₹14 lakhs;

Advance for purchase of truck --- ₹7 lakhs.

In March, 2015 construction of shed was completed and machinery installed. Delivery of truck was not received. Total interest charged by the bank for the year ending 31st March, 2015 was ₹12 lakhs. Show the treatment of interest AS-16.

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Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015

ISBN: 9789352605569

2nd Edition

Authors: M Hanif, A Mukherjee

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Question Posted: Aug 19, 2023 02:56 AM

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On 25th April, 2014, Neel Limited obtained a loan from the bank for 70 lakhs to be

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AS16 refers to Accounting Standard 16 which deals with Borrowing Costs Borrowing costs are interest and other costs incurred by an entity in connectio...View the full answer

Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015

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