A second hand machinery is purchased for Rs. 10,000 the amount of Rs. 1,500 is spent on transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be :a)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer?

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A second hand machinery is purchased for Rs. 10,000 the amount of Rs. 1,500 is spent on transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be :

a)
Rs. 10,000
b)
Rs. 10,500
c)
Rs. 11,500
d)
Rs. 12,700

Correct answer is option 'D'. Can you explain this answer?

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A second hand machinery is purchased for Rs. 10,000 the amount of Rs. ...

Calculation of Amount Debited to Machinery Account

Initial Cost of Machinery = Rs. 10,000
Transportation Cost = Rs. 1,500
Installation Cost = Rs. 1,200

Total Cost = Initial Cost + Transportation Cost + Installation Cost
Total Cost = Rs. 10,000 + Rs. 1,500 + Rs. 1,200
Total Cost = Rs. 12,700

Therefore, the amount debited to machinery account will be Rs. 12,700.

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A second hand machinery is purchased for Rs. 10,000 the amount of Rs. ...

Simple!
the machinery a/c should be debited with the Cost that actually spent on the machine! i.e.,total cost till the machinery is ready to use.

conclusion:: the money spent on machinery from time of buying till the machinery making ready to use is counted as Total cost to purchase machinery!

thus, 10,000+1,500+1,200=12700/-

(if the a/c said that the technician coat's 2000/- for chekup then it would also be added, coz it is cost before machinery ready to use)

:)

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A second hand machinery is purchased for Rs. 10,000 the amount of Rs. 1,500 is spent on transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be :a)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer?

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A second hand machinery is purchased for Rs. 10,000 the amount of Rs. 1,500 is spent on transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be :a)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A second hand machinery is purchased for Rs. 10,000 the amount of Rs. 1,500 is spent on transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be :a)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A second hand machinery is purchased for Rs. 10,000 the amount of Rs. 1,500 is spent on transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be :a)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer?.

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