Start learning →

General loans of Rs 5 lakh at 8% and Rs 5 lakh at 12%; Rs 2 lakh spent on the asset. Capitalise?

ARs 24,000
BRs 16,000
CRs 1,00,000
DRs 20,000
Answer & Solution
Correct answer: D. Rs 20,000
The weighted rate is 1,00,000 over 10,00,000, or 10%, and 10% of Rs 2,00,000 is Rs 20,000.
Practise this question with Quill — CA Inter →

Keep practising AS 16 Borrowing Costs

Browse all AS 16 Borrowing Costs questions for CA Inter, or explore more Accounting topics.

Start a AS 16 Borrowing Costs lesson →
Related questions