wages paid for erection of machinery is debited to..........A/c
a) Machinery b) Wages
c) Cash d) None of these
Please explain in detail.........??
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Replies (3)
Debited to Machinary a/c.. As wages paid for erection.. Capital expenditure..
| Originally posted by : Devesh | ||
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Debited to Machinary a/c.. As wages paid for erection.. Capital expenditure.. |
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thanx.....bro........!!
wages paid to errection of machinery is a capital expenditure.because wages incuured to install the machine in factory.but wages paid after the installation of machinery is revenue expenditure. so machinery a/c dr - to cash a/c. i hope u got the answer
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