The installation expenses for a new machinery will be debited to __________________.

Installation Expenses Account

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Cash Account

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Machinery Account

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Profit and Loss Account

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Solution

The correct option is B Machinery Account
The installation expenses for a new machinery will be debited to machinery account.
All the incidental expenses incurred in reference to an asset till the asset is ready for put to use are treated part of the asset cost and to be debited to the respective asset account.

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Similar questions

Q. The installation expenses for a new machinery will be debited to __________.

Q. Rs.10,000 Paid in cash for installation of a new machine were debited to Installation Expenses Account While Passing a rectifying entry :

Q. Rs.10,000 paid in cash for installation of a new machine were debited to Installation Expenses Account. This error:

Q. Which account is debited when expenses are paid for installation of machinery?

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(vi) Amount of Rs 7,500 withdrawn by proprietor for personal use was debited to Miscellaneous Expenses a/c.

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