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CA Inter doubt

During the year MIs Progressive Company Limited made additions to its factory by using its own workforce, at a cost of ` 4,50,000 as wages and materials. The lowest estimate from an outside contractor

Asked by Anjeet22 Jul 2024326 views

1 answer

  1. Sujal · 22 Jul 2024

    Book value of constructed asset cost of construction which is allocated to such asset, should be recognised as cost of such asset ! Hence, 4,50,000 should be debited & not 6,00,000 !!!

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