Subject :- ADVANCED FINANCIAL ACCOUNTING (FIN611) Question # 2: XYZ Limited has the following loans outstanding as at December 31, 2020. Calculate the Capitalization Rate Loan – A @ 8% (taken at...

Subject :- ADVANCED FINANCIAL ACCOUNTING (FIN611)

Question # 2:

XYZ Limited has the following loans outstanding as at December 31, 2020. Calculate the Capitalization Rate
Loan – A @ 8% (taken at January 01, 2020) Rs. 600,000
Loan – B @ 5% (taken at July 01, 2020) Rs.400,000
Loan – C @ 9% (taken at September, 01 2020) Rs.300,000
The company spent following amounts on construction of an asset.
March 01, 2020. Rs. 500,000
August 01, 2020. Rs. 400,000
December 1, 2020 Rs. 400,000

Note:- Solve these question and please explain in detail in such a way that i will get full marks.