Journal entry

wages paid for erection of machinery Rs. 8000.
what does it means and how?
Replies (4)
Quick Summary
This discussion clarifies the accounting treatment for wages paid during the erection of machinery. According to accounting standard 10, these costs, amounting to Rs. 8000 in this case, should be capitalised. This means the wages are added to the total cost of the machinery rather than being treated as an immediate expense.

Are You asking the meaning of Erection...? or wages...?
Erection means installation. but is the exact answer you want bro
Wages paid for erection needs to be capitalised as accounting standard 10 .
Capitalised 8000 in machinery cost

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