A machinery item puchase form M/s. XYZ for the cost of
Rs.2,00,000/- with freight charges Rs.20,000/- and
installation charges Rs.10,000/- what is the journal entry
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Answer Posted / acp
By Machinery a/c dr. Rs.2,30,000/-
To M/s. XYZ Cr. Rs.2,30,000/-
(all the extra exp. i.e. freight & installation charges
added in machinery items rate then the value of machinery
item and capitalised)
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