Accountancy, asked by mdjunaidansaripc47uc, 1 year ago

wages paid for construction of office debited to wafes a/c rs. 20000

Answers

Answered by Anonymous
0

OFFICE AC DR


TO WAGES AC CR

Answered by Anonymous
3

Wages paid for constuction of office is a capital expenditure and shall be debited to Office Building A/C and not to wages A/C.

Wrong Entry :

Wages A/C   dr  Rs.20,000

   To Cash A/C    Rs.20,000

Correct Entry :

Office Building A/C  Dr    Rs.20,000

   To Cash A/C      Rs.20,000

Rectification Entry :

Office Building A/C    Rs.20,000

   To Wages A/C      Rss.20,000

(Being Wages paid for construction of office and wrong entry rectified)

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