Question 1: On September 1, 2008, Shine Industries Limited (SIL) started construction of its new office building and completed it on May 31, 2009. The payments made to the contractor were as follows: Date of payment September 1, 2008 December 1, 2008 February 1, 2009 June 1, 2009 Rupees 10,000,000 15,000,000 12,000,000 9,000,000 In addition to the above payments, SIL paid a fee of Rs. 8 million on September 1, 2008 for obtaining a permit allowing the construction of the building. The project was financed through the following sources: (1) On August 1, 2008 a medium term loan of Rs. 25 million was obtained specifically for the construction of the building. The loan carried mark up of 12% per annum payable semi- annually. A commitment fee @ 0.5% of the amount of loan was charged by the bank. Surplus funds were invested in savings account @ 8% per annum. On February 1, 2009 SIL paid the six monthly interest plus Rs. 5 million towards the principal. (II Existing running finance facilities of SIL Running finance facility of Rs. 150 million from Bank A. The average outstanding balance during the period of construction was Rs. 80 million. Interest expense for the construction period on running finance balance charged by the Bank was Rs. 10.4 million. Required: Prepare relevant journal entries for the year ended June 30, 2009 in accordance with the requirements of International Accounting Standards. (4 Marks)