Question

Hire charges of a special machine
20,500​

Answer 1

Answer:

Machine a/c Dr 20500

to cash a/c. 20500

Answer 2

Capital expenditure is the correct answer  

• Hiring charges of the special machine is a case of capital expenditure.

• A capital expenditure is essentially an amount expended to obtain or meaningfully expand the volume or competencies of a long-term asset such as equipment or buildings.  

• Characteristically, the cost is recognized in a balance sheet account that is stated under the heading of Property, and Equipment.

Hope it helped...