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Tell me if the company wants to enhance thier business and
incured the cost on other building (like Buliding Material,
Iron and Others) so we will put it in to the expenses or i
have to put it into the Fixed asset land and buildin by
passing this entry
Land and Building (Dr)
Bank/Cash/Detors) (Cr)
Thanks
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Answer Posted / motilal verma
You are right it should be captalized.
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hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
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