Please Help: Accounting Treatment of Borrowing cost
Posted Date : 31-May-2019 , 04:05:10 pm | Posted By sandeep Kaushik
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?
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?
Category : Accounts | Answers : 0 | Comments : 3 | Hits : 714
Answers:
Comments
ashok
04-Jun-2019 , 01:38:41 pmDear Sandeep Interest on capital borrowed for the purpose of investment or business or profession is allowed as an expenditure. Regards Ashok 8523007076
gurdeep ahuja
01-Jul-2019 , 12:32:07 pmYes ,you have to capitalised the interest payment as paid for capital investment
pankaj jain
12-Dec-2019 , 09:35:42 pmthis expense will be treat as expense.this is out of scope AS-16.