Please Help: Accounting for Buyers Credit

Posted Date : 18-Feb-2012 , 01:00:24 pm | Posted By CA Vipul M. Devganiya

What would be the accounting treatment for Buyers credit arranged?What would be the accounting entry at the time of roll - over of buyers credit?Whether cost for arrangement of buyers credit like LOU charges,interest charges, bank commission charges will be capitallised as a part of acquisition cost of assets?

Category : Accounts | Answers : 10 | Comments : 0 | Hits : 1902

Answers

Answer By: Mrattunjay

its depends upon situation by situation... in some cases it should be capitalised but in other cases not ?

So can u explain the real facts for advice from our point of view?

Answer By: Ketan Samdani

If the credit is for purchasing a fixed asset then capitalise otherwise charge the expenses to Profit & loss a/c on accrual basis.

Answer By: Vaneet Gupta