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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._______
  • a)
    1,18,000
  • b)
    1,26,000
  • c)
    1,00,000
  • d)
    1,02,000
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A machinery was purchased for Rs.1,00,000, Expenses incurred were - Br...
Amount to be debited to Machinery A/c = 1,00,000+2%+1,500+3,000+7,000+4,500=Rs 1,18,000
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Most Upvoted Answer
A machinery was purchased for Rs.1,00,000, Expenses incurred were - Br...
When machine is purchased all expenses are added to machine ac so2000+1500+3000+7000+4500 = 18000 so machine will be debited by 118000 and after 11 mth repair will ve charged to repair ac only
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Community Answer
A machinery was purchased for Rs.1,00,000, Expenses incurred were - Br...
To calculate the cost of machinery to be debited to Machinery A/c, we need to consider the original cost of the machinery, the expenses incurred at the time of purchase, and any subsequent repairs.

Given Data:
Original cost of machinery = Rs. 1,00,000
Expenses incurred at the time of purchase:
- Brokerage = 2% of Rs. 1,00,000 = Rs. 2,000
- Repairs = Rs. 1,500
- Transport = Rs. 3,000
- Trial run = Rs. 7,000
- Installation = Rs. 4,500

Subsequent repair expenses = Rs. 8,000

Calculation:
1. Calculate the total expenses incurred at the time of purchase:
Total expenses = Brokerage + Repairs + Transport + Trial run + Installation
Total expenses = Rs. 2,000 + Rs. 1,500 + Rs. 3,000 + Rs. 7,000 + Rs. 4,500
Total expenses = Rs. 18,000

2. Calculate the total expenses incurred including subsequent repairs:
Total expenses including subsequent repairs = Total expenses + Subsequent repair expenses
Total expenses including subsequent repairs = Rs. 18,000 + Rs. 8,000
Total expenses including subsequent repairs = Rs. 26,000

3. Calculate the cost of machinery to be debited to Machinery A/c:
Cost of machinery = Original cost of machinery + Total expenses including subsequent repairs
Cost of machinery = Rs. 1,00,000 + Rs. 26,000
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.
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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.4,500After 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._______a)1,18,000b)1,26,000c)1,00,000d)1,02,000Correct answer is option 'A'. Can you explain this answer?
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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.4,500After 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._______a)1,18,000b)1,26,000c)1,00,000d)1,02,000Correct answer is option 'A'. 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 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.4,500After 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._______a)1,18,000b)1,26,000c)1,00,000d)1,02,000Correct answer is option 'A'. 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 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.4,500After 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._______a)1,18,000b)1,26,000c)1,00,000d)1,02,000Correct answer is option 'A'. Can you explain this answer?.
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