On purchase of a machine, $R s . 200$ was paid to workers as wages for installing the machine, entry will include _________.

debit to Wages A/c

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debit to Installation charges A/c

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debit to Machinery A/c

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debit to Cash A/c

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Solution

The correct option is C debit to Machinery A/c
Expenditure incurred on carriage and installation of machinery or on construction of building , e.g., freight, wages paid for installation of machinery, purchase of construction material for building, wages for construction of building, etc. are treated as CAPITAL EXPENDITURE and debited to "Machinery or Building Account".
Accordingly entry to record above transaction would be.
Machinery A/c Dr. 200
To Cash A/c 200

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Similar questions

Wages paid for installation of machinery Rs 7000 was debited to Installation expense account. The rectifying entry to correct the same shall be?

Following transactions have occurred. Find the total expenditure to be carried to Repair expenditure.

`- Rs 500 paid for installation of machinery was debited to wages account

`- Rs 5000 paid for extension of building was debited to repairs account

`- Rs 2000 paid for repair of an existing machine was debited to machinery account

Rectify the following errors:

(i) Repairs made on Building for Rs 1,00,000 were debited to Building a/c.
(ii) Rent paid Rs 12,000 to Landlord was debited to Landlord a/c.
(iii) Wages paid for installation of Machinery of Rs 7,000 was debited to Wages a/c.
(iv) Salary paid to Accountant (Mr. Ram) on Rs 15,000 was debited to Ram a/c.
(v) Rs 32,000 paid for purchase of Computer was charged to Office Expenses a/c.
(vi) Amount of Rs 7,500 withdrawn by proprietor for personal use was debited to Miscellaneous Expenses a/c.

Q. Payment of Rs. 6,000 as wages to workmen for installation of a machine should be debited to _________.

Rectify the following errors:-

1) Purchase of Building was passed through purchases Book as Rs 65,000.
2) Wages paid for construction of building Rs 15,000 was wrongly debited to wages account.
3) Expense of installation of Machinery was debited to installation charges account Rs 55,000.
4) Brokerage paid Rs 600 for purchase of investment were debited to brokerage account.
5) Old Motor car purchased was debited to repairs account Rs 7,000.
6) Materials purchased for construction of Building was debited to purchases account Rs 9,000.

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On purchase of a machine, Rs.200 was paid to workers as wages for installing the machine, entry will include _________.

On purchase of a machine, $R s . 200$ was paid to workers as wages for installing the machine, entry will include _________.