Question
On 1 July 2019, Huda (pvt) Ltd borrowed Rs. 5 Million for one year, for finance the construction of a new Plant & Machinery. The
On 1 July 2019, Huda (pvt) Ltd borrowed Rs. 5 Million for one year, for finance the construction of a new Plant & Machinery. The interest rate on the loan is 6% and is payable on maturity of the loan. Construction work started immediately from 1 July 2019. The asset was available for use on 30 June 2020 having a construction cost of Rs. 6 Million. What is the carrying amount of the Plant & Machinery in Huda (pvt) Ltd's statement of financial position as at 30 June 2020?
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Managerial Accounting
Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson
9th Edition
0538842822, 978-0538842822
