Apply Accounting Standards* According to Accounting Standard (AS) 16, the amount eligible for capitalization should not exceed the difference between the cost of inventory and its net realizable value. Compare with Eligible Capitalization Amount Compare the calculated maximum capitalizable amount with the eligible capitalization amount: Eligible Capitalization Amount= 12,000 Since 12,000 exceeds 5,000, the amount that can be cap The amount that can be capitalized as part of the inventory cost is ₹5,000. (b) ₹5,000.

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Asked by Bhavana13 Aug 2024337 views

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Dinesh · 13 Aug 2024
Apply Accounting Standards* According to Accounting Standard (AS) 16, the amount eligible for capitalization should not exceed the difference between the cost of inventory and its net realizable value. Compare with Eligible Capitalization Amount Compare the calculated maximum capitalizable amount with the eligible capitalization amount: Eligible Capitalization Amount= 12,000 Since 12,000 exceeds 5,000, the amount that can be cap The amount that can be capitalized as part of the inventory cost is ₹5,000. (b) ₹5,000.

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