Fabrèges finances a logistics park with a specific borrowing whose interest for the year is 120,000, payable at the end of the year. The funds not yet spent were temporarily invested and earned 18,000 received in cash. Case convention: the investment income is presented as a deduction from the amount capitalised. Record the entry for the interest capitalised, then the entry for the investment income.
- Interest on the specific borrowing
- 120,000
- Investment income received
- 18,000