The company has obtained Institutional Term Loan of $.580 lakhs for modernisation and renovation of its Plant &Machinery. Plant &Machinery acquired under the modernisation scheme and installation completed on 31st March, 2017 amounted to $.406 lakhs, $.58 lakhs has been advanced to suppliers for additional assets and the balance loan of $.116 lakhs has been utilised for working capital purpose. The Accountant is on a dilemma as to how to account for the total interest of $52.20 incurred during 2016-2017 on the entire Institutional Term Loan of $.580