The company has obtained Institutional Term Loan of $.580 lakhs for modernisation and renovation of its Plant &Machine
Posted: Thu Apr 28, 2022 10:32 am
The company has obtained Institutional Term Loan of $.580 lakhs for modernisation and
renovation of its Plant &Machinery. Plant &Machinery acquired under the modernisation
scheme and installation completed on 31st March, 2017 amounted to $.406 lakhs, $.58
lakhs has been advanced to suppliers for additional assets and the balance loan of $.116
lakhs has been utilised for working capital purpose. The Accountant is on a dilemma as to
how to account for the total interest of $52.20 incurred during 2016-2017 on the
entire Institutional Term Loan of $.580
renovation of its Plant &Machinery. Plant &Machinery acquired under the modernisation
scheme and installation completed on 31st March, 2017 amounted to $.406 lakhs, $.58
lakhs has been advanced to suppliers for additional assets and the balance loan of $.116
lakhs has been utilised for working capital purpose. The Accountant is on a dilemma as to
how to account for the total interest of $52.20 incurred during 2016-2017 on the
entire Institutional Term Loan of $.580