Commitment charges, loan processing charges, guarantee charges, loan facilitation charges, discounts/premium on borrowings, other ancillary costs are shown under ...........

Interest expenses

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Other borrowing costs

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Amortization expenses

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None of these

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Solution

The correct option is B
Other borrowing costs

Commitment charges, loan processing charges, guarantee charges, loan facilitation charges, discounts/premium on borrowings, other ancillary costs are shown under other borrowing costs.

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Q. Out of the Following, identify the items that are shown in the Note to Accounts on Finance Costs:
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$\begin{matrix} Rs (i) Interest paid on Debentures & 1, 80, 000 (ii) Interest paid on Term Loan & 3, 10, 000 (iii) Loan Processing Charges & 60,000 (iv) Interest received on Term Deposits & 75, 000 (v) Discount on Issue of Debentures written off & 20, 000 (vi) Interest paid on Cash Credit & 2, 50, 000 \end{matrix}$

Q. A bank charges Rs. 6 for a loan of Rs. 120. The borrower receives Rs. 114 ' and repays the loan in 12 installments of Rs. 10 a month. The interest rate is approximate.

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Commitment charges, loan processing charges, guarantee charges, loan facilitation charges, discounts/premium on borrowings, other ancillary costs are shown under ...........

The correct option is B Other borrowing costs Commitment charges, loan processing charges, guarantee charges, loan facilitation charges, discounts/premium on borrowings, other ancillary costs are shown under other borrowing costs.

The correct option is B
Other borrowing costs

Commitment charges, loan processing charges, guarantee charges, loan facilitation charges, discounts/premium on borrowings, other ancillary costs are shown under other borrowing costs.