Question

1. Bought machinery from Rama Stores for 28,000 and paid freight 1,000,
carriage 200 and installation charges 800.
2. Bought goods from Ratnakar for 8,000 for cash and paid carriage charges
500.
3. Bought a second hand machine for 11,000 and spent * 1,000 on carriage
and * 3,000 on its repair.
4. Paid repair charges of office furniture 500.
5. Bought cement 40,000; bricks 50,000; timber 30,000 and paid wages
25,000 for the construction of building.​

Answer 1

Answer:

journal entries -

1. Machinery a/c                Dr ₹30,000

   To Rama Stores a/c               ₹28,000

   To Cash a/c                           ₹2,000

(Being machinery purchased on credit, and paid freight,carriage,installation charges in cash)

2. purchase a/c                 Dr ₹8,000

   Carriage Inward a/c       Dr ₹500

      To Cash a/c                       ₹8,500

(Being goods bought for cash and paid for carriage)

3. Machine a/c                   Dr ₹15,000

    To Cash a/c                           ₹15,000

(Being second hand machinery purchased and paid for carriage and repairs)

4. Repairs a/c                     Dr ₹500

     To Cash a/c                          ₹500

(Being repair charges on office furniture paid)

5. Building a/c                    Dr ₹1,45,000

     To Cash a/c                         ₹1,45,000

(Being expense incurred for constructing a building)

Explanation:

All expenses incurred till the asset is ready to use,to be added with the value of asset. Thats why the expenses are not debited seperately on journal no.1,3,5.

I hope it helps.