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10. A machinery was purchased for Rs. 1,00,000, Expenses incurred were - Brokerage 2% Repairs Rs. 1,500; Transport Rs. 3000; trial run Rs. 7,000; installation Rs. 4,500 After operating the machine for 11 months an amount of Rs. 8,000 was spent on repairs. Cost of machinery to be debited to Machinery A/c will be Rs.?
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10. A machinery was purchased for Rs. 1,00,000, Expenses incurred were...
To find the cost of the machinery that should be debited to the Machinery account, we need to add up all of the expenses incurred on the machinery.
The brokerage on the machinery is Rs. 1,00,000 * 2% = Rs. 2,000.

The total cost of repairs is Rs. 1,500 + Rs. 7,000 + Rs. 8,000 = Rs. 16,500.
The total cost of transport and installation is Rs. 3,000 + Rs. 4,500 = Rs. 7,500.
Adding up all of these expenses gives us a total of Rs. 2,000 + Rs. 16,500 + Rs. 7,500 = Rs. 26,000.

To find the cost of the machinery that should be debited to the Machinery account, we need to add this total to the purchase price of the machinery: Rs. 1,00,000 + Rs. 26,000 = Rs. 1,26,000.

Therefore, the cost of the machinery that should be debited to the Machinery account is Rs. 1,26,000.

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10. A machinery was purchased for Rs. 1,00,000, Expenses incurred were...
Calculation of Cost of Machinery

To calculate the cost of machinery to be debited to Machinery A/c, we need to consider the following expenses:

1. Purchase Price:
The machinery was purchased for Rs. 1,00,000.

2. Brokerage:
A brokerage of 2% was paid on the purchase price.
Brokerage = 2% of Rs. 1,00,000 = Rs. 2,000

3. Repairs:
Initial repairs were done at a cost of Rs. 1,500.

4. Transport:
The machinery was transported to the desired location at a cost of Rs. 3,000.

5. Trial Run:
A trial run was conducted after installation, which cost Rs. 7,000.

6. Installation:
The machinery was installed at a cost of Rs. 4,500.

7. Additional Repairs:
After operating the machine for 11 months, an amount of Rs. 8,000 was spent on repairs.

Calculating the Cost of Machinery:

The cost of machinery to be debited to Machinery A/c can be calculated by adding up all the expenses incurred:

Cost of Machinery = Purchase Price + Brokerage + Repairs + Transport + Trial Run + Installation + Additional Repairs

Cost of Machinery = Rs. 1,00,000 + Rs. 2,000 + Rs. 1,500 + Rs. 3,000 + Rs. 7,000 + Rs. 4,500 + Rs. 8,000

Cost of Machinery = Rs. 1,26,000

Therefore, the cost of machinery to be debited to Machinery A/c will be Rs. 1,26,000.

Explanation:

The cost of machinery includes not only the purchase price but also various additional expenses incurred in acquiring and setting up the machinery. These expenses include brokerage, repairs, transport, trial run, and installation costs. Additionally, any subsequent repairs or maintenance expenses are also included in the cost of machinery.

In this case, the purchase price of the machinery is Rs. 1,00,000. However, after considering all the additional expenses, such as brokerage, repairs, transport, trial run, installation, and additional repairs, the total cost of machinery comes out to be Rs. 1,26,000.

It is important to account for all these expenses while calculating the cost of machinery as it gives a more accurate picture of the total investment made in acquiring and setting up the machinery.
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10. A machinery was purchased for Rs. 1,00,000, Expenses incurred were - Brokerage 2% Repairs Rs. 1,500; Transport Rs. 3000; trial run Rs. 7,000; installation Rs. 4,500 After operating the machine for 11 months an amount of Rs. 8,000 was spent on repairs. Cost of machinery to be debited to Machinery A/c will be Rs.?
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