Question

Purchase includes purchase of machinery for 10,000 on 1st October, 2017.​

Answer 1

Answer:

reduce from purchases

and add in machinery

Explanation:

if there is any depreciation so. charge it for 6m

Answer 2

Answer:

Answer:

Exclude it from purchases  by crediting purchase by 10,000

Include it in Property, Plant and Equipment by Debiting it  by 10,000

Charge depreciation from the date of purchase to reporting date using either straight line method or WDV method (depends on company policy)

Explanation:

It is capital expenditure not revenue expenditure