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Q. > Please Help: Accounting Treatment of Borrowing cost
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967 views • Question added May 31, 2019 • Accounts • By sandeep Kaushik , Bhiwani


Hi All,

I have invested in the shares of a company and to invest into the shares i have paid interest on the money borrowed to invest into the shares. How should i need to treat the interest on borrowing? Do i need to capitalize or expense out the same?

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ashok

04-Jun-2019 , 01:38:41 pm

Dear Sandeep Interest on capital borrowed for the purpose of investment or business or profession is allowed as an expenditure. Regards Ashok 8523007076

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gurdeep ahuja

01-Jul-2019 , 12:32:07 pm

Yes ,you have to capitalised the interest payment as paid for capital investment

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pankaj jain

12-Dec-2019 , 09:35:42 pm

this expense will be treat as expense.this is out of scope AS-16.

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