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AS 11

Accountancy

For this question amount to be capitalized is Rs.62.5 lakhs right? As its payable on three annual equal instalments

Soon to be CA

Soon to be CA

CA Inter

★ 4K+

21-Oct-24 17:12

604

Answers (2)

Value of PPE will be 3,000 + 187.5 = 3062.5L rupees Loan is for 3000L/40 = 75L USD Thus exchange difference is 75L × (42.5-40) = 187.5L rupees (Loss on settlement + Loss on restating at balance sheet date) This sum is capitalised so we add it to cost of PPE

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

★ 32K+

21-Oct-24 19:32

Vishnu Muraleedharan

Value of PPE will be 3,000 + 187.5 = 3062.5L rupees Loan is for 3000L/40 = 75L USD Thus exchange difference is 75L × (42.5-40) = 187.5L rupees (Loss on settlement + Loss on restating at balance sheet date) This sum is capitalised so we add it to cost of PPE

3187.5 rupees, not 3062.5

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

★ 32K+

21-Oct-24 19:32

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