Question

Select the most appropriate answers from the alternatives given below and rewrite the sentence.

Wages Paid for installation of Machinery, debited to _________ account.
a) Profit and Loss
b) Trading
c) Wages
d) Machinery

Answer 1

Wages paid for installation of machinery, debited to Machinery account.

Explanation:
The wages paid for installation of machinery are considered capital expenditure, as they are non-recurring and incurred to put the machinery in use. So, these wages should be added to the cost of the asset and should be debited to the Machinery A/c.