paid repairing charges on existing machinery what is the journal entry?
Answers
Answer:
The Journal entry for each of the cases is provided below: 1) Rs 500 paid for repair of Machinery. -> Expenses incurred at the time of purchase of assets on its installation are debited to the asset account. Repairs whereas are done after the asset is put to use, hence, it will not be added to the cost of the asset.
Explanation:
The Journal entry for each of the cases is provided below: 1) Rs 500 paid for repair of Machinery. -> Expenses incurred at the time of purchase of assets on its installation are debited to the asset account. Repairs whereas are done after the asset is put to use, hence, it will not be added to the cost of the asset............
Answer:
The repairs account will be debited and the cash account will be credited for paid repairing charges on existing machinery.
Explanation:
Repairs account Dr. XXXX
To Cash account xxxx
( being cash paid for repairs of machinery)
Meaning of Journal :
- Journal refers to books of original entries.
- In which monetary transactions are noted down for the first time in chronological order.
- The word Jour in Journal is derived from the French word which means diary. A journal is a daily record book in which transactions are recorded for the first time.
- A journal records both debit and credit aspects of transactions according to the double entry system. The transactions are recorded on a permanent basis which acts as evidence in case of emergency
- .Each entry in the journal is followed by a brief explanation of the transactions which is called Narration.
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