On 1 January 2014 Mine-Tech Ltd borrowed £10million at an interest rate of 6% to fund the construction of a new manufacturing site. Land at a cost of £4million was acquired on 1 February 2014 and construction commenced on 1 May 2014. Construction was completed on 30 September 2014 at an additional cost of £9.5million. Although the plant was usable from that date production did not commence until 1 December 2014 due to marketing delays. No investment income was earned on the temporary investment of any unused funds.
How would I account for this and with accounts would be debited and credited ??
How would I account for this and with accounts would be debited and credited ??