Please Help: Accounting Treatment of Borrowing cost
Posted Date : 31-May-2019 , 04:05:10 pm | Posted By: Sandeep Kaushik
Category :
Accounts | Answers :
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Comments :
3| Hits: 850
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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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| Posted By : Pankaj Jain |
12-Dec-2019, 09:35:42 |
| this expense will be treat as expense.this is out of scope AS-16. |
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| Posted By : Gurdeep Ahuja |
01-Jul-2019, 12:32:07 |
| Yes ,you have to capitalised the interest payment as paid for capital investment
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| Posted By : Ashok |
04-Jun-2019, 01:38:41 |
| 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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