Year 1 - A Company purchased a land from its own funds and started construction on two towers on the land. The Company for the construction borrowed…
CA Intermediate · Advanced Accounting · RTP · May 2026
Year 1 - A Company purchased a land from its own funds and started construction on two towers on the land. The Company for the construction borrowed funds of 60 lakhs each for both the towers. The Company is required to pay interest of 60,000 annually for each loan. During the first year the Company allotted the vacant area for parking purposes which fetched revenue of 15,000 in year 1 only. Tower 1 got ready at the end of year 2. The Company capitalised the same and started using the same for intended purpose.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
Nil
Topics: AS 16
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