alleryStart learning →A project cost Rs 14 lakh; Rs 11 lakh was spent before the criteria were met. Capitalised?
ARs 3 lakh
BRs 14 lakh
CRs 11 lakh
DRs 8 lakh
Answer & Solution
Correct answer: A. Rs 3 lakh
Only spend after the recognition criteria are first met is capitalised, so 14 - 11 = Rs 3 lakh, and the earlier Rs 11 lakh stays an expense.
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