Question

Wages paid for erection of Machinery should be debited to Wages Account.

• A. True
• B. False

Answer 1

The correct option is B False

All incidental expenses incurred in relation to the purchase of any asset should be debited to the respective asset account. Till the asset is put to use, all expenses including wages paid for erection , installation cost has to be debited to the asset account.

Wages paid for erection of Machinery should be debited to Machinery account not to the wages account.