Perrin is building a workshop financed by its general borrowings. The weighted average expenditure for the workshop in the year is 1,750,000 and the capitalisation rate is 6.5 %. Case convention: the borrowing costs incurred in the period exceed the amount calculated and are payable at the end of the year. Record the entry for the borrowing costs capitalised.
- Weighted average expenditure
- 1,750,000
- Capitalisation rate
- 6.5 %