Q2564
The term loan of Rs. 5,00,000 was received from IFCI. It was used as under: I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress II. Rs. 3,00,000 was used for financing the working capital The interest payable would be treated:
A.
on both I and II as capital expenditure
B.
on I as capital expenditure and on II as revenue expenditure
AnswerC.
on I as deferred expenditure and on II as revenue expenditure
D.
on I as deferred revenue expenditure and on II as capital expenditure
Answer: Option B
Solution
Answer: Option B
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