Journal entry..??

1,   Machinary a/c dr 50,000

           To cash/bank a/c     50,000

(being machinery purchased for Rs.50,000)

2,  Carriage on machinery a/c dr 2000

          To cash a/c                                2000

(Being carriage paid on machinery purchase)

Machinery a/c   Dr. 52,000

   To Bank                                      52,000

(being the machinery purchased and cartage expenditure paid thereof )

MACHINERY                52000

TO BANK/CASH                              52000

Machinery A/c Dr    52,000

        To Bank A/c    Cr     52,000

 ( Being the machinery purchased with carriage expenses paid)

Machinery A/C   Dr.  52000

           To Cash/ Bank a/c     52000

(Being Machinery purchased for Rs. 50000 & Cartage exp. of Rs.2000

Cartage exp. capitalised so added to the cost of Machinery.)                   

1,  Machinary a/c dr 50,000

      To

     cash/bank a/c 50,000

     (being machinery purchased for Rs.50,000)

 2, Carriage on machinery a/c dr 2000

      To

       cash a/c 2000

       (Being carriage paid on machinery purchase)

3   Machinary a/c dr  2000

      To

      Carriage on machinery a/c  2000

      ( Being Carriage charges capitalized to machinery )

As Per AS 10, carriage of 2000 should be added with cost of machinery.

Components of Cost:

1 The cost of an item of fixed asset comprises its purchase price, including
import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to its working condition for its intended
use; any trade discounts and rebates are deducted in arriving at the purchase
price. Examples of directly attributable costs are:

(i) site preparation;
(ii) initial delivery and handling costs;
(iii) installation cost, such as special foundations for plant; and
(iv) professional fees, for example fees of architects and engineers.

The cost of a fixed asset may undergo changes subsequent to its acquisition
or construction on account of exchange fluctuations, price adjustments,
changes in duties or similar factors.

Machinery A/c Dr                    52,000      

       To Bank A/c    Cr                             52,000

(Being the machinery purchased with carriage expenses paid)