Question

A machine was purchased on 1st January ,2013 for rupees 75000 and rupees 5000 was spent on it's establishment

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Answer 1

ACCORDING TO THE QUESTION:

COST OF MACHINERY= Purchasing cost + direct experience

=→ 75,000 + 5,000

=→ 80,000.

JOURNAL ENTRY:-

Machinery a/c Dr. 80,000

To Cash a/c. 80,000

(being machinery purchased and paid establishment in cash)

I hope this will help you friend.