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calculate capitalisation rate The XYZ limited has planned the construction of plant for production at another site. The construction will be required a huge amount.
calculate capitalisation rate
The XYZ limited has planned the construction of plant for production at another site. The construction will be required a huge amount. This may also require to import some machinery as well. The following information has been extracted from the balance sheet of XYZ Limited as on 31st December, 2020 Outstanding Loans: Loan A @ 19% p.a Rs. 1,500,000 Loan B @ 15% p.a Rs. 3,500,000 Loan C @ 21% P 6 p.a Rs. 2,500,000 Loan A and Loan C was taken at the start of the financial Year 2020 whereas, the Loan B was taken on March 31st 2020. The import duty of Rs. 100,000 also paid after deducting the government subsidy given of Rs. 100,000 on import duty. Other than these expenses, XYZ Company Limited has incurred the following expenditure during the year on plant under construction: February 01, 2020 500,000 April 30 2020 700,000 September 30, 2020 1,300,000 Required Determine the capitalization rate and total cost to be capitalized on construction of the plant till the date
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