Question
From the following information of XYZ Ltd. for the year
ended 31st March, 2024, calculate the total Finance Costs: Interest paid on Term Loan: ₹2,50,000 Interest paid on Bank Overdraft: ₹35,000 Interest paid on Deposits: ₹75,000 Interest Received on Fixed Deposits: ₹25,000 Bank Charges: ₹9,500Solution
The total Finance Costs to be shown in the Statement of Profit and Loss includes: Interest paid on Term Loan: ₹2,50,000 Interest paid on Bank Overdraft: ₹35,000 Interest paid on Deposits: ₹75,000 Total Finance Costs = ₹2,50,000 + ₹35,000 + ₹75,000 = ₹3,60,000 Note: Interest received on Fixed Deposits and Bank Charges are not included in the Finance Costs.
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