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Can anyone tell me that when we purchases a fixed asset like
Machinery its our capital Expenditure and after acquetion of
this assets the expenses like unloading loading, and some
other parts for reparing purchase for this in which account
i have to enter.
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Answer Posted / rajashekhar
Trading a/c dr or carriage alc DR
or p/L a/c dr OR Repair Alc DR
TO Cash a/c
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Q13. Journalise the following transactions: Proprietor withdrew for private use Rs.4000/- from bank and 6000/- cash. Goods Costing Rs.5000 was burnt by fire. Purchase Machinery for cash Rs.150000/- and paid Rs.2000/- on its Installation. Charge 5% Depreciation on building costing Rs.200000/- and 8% Depreciation on Furniture costing Rs.5000/-. Prepaid Salary Rs2000/- Kapil who owed us Rs20000/- become insolvent and nothing is received from his estate.
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