Question

purchased land for rs 200000 and paid 2% as brokerage and rs 10000 as registration charges on it​

Answer 1

Answer:

land a/c dr 2,14,000

(2,00,000+4,000+10,000)

to bank a/c 2,14,000

( being land purchased including brokerage and registration fee)

Explanation:

any expenses incurred while purchasing asset is considered as a capital expenditure so added asset to get total cost of asset.