Question

Wages paid to Mohan for erecting a machine should be credited to __________.

• A. wages A/c
• B. machine A/c
• C. Mohans A/c
• D. cash A/c

Answer 1

Answer: (D)

cash A/c

'Wages paid' for the 'installation of machinery' should be debited to machinery account. Explanation: It is the amount incurred for buying and installing the machine. The 'machinery account' is debited since the machine has to be put to use.