Question

Wages paid for installation of machinery should be debited to ________ account. (Fill in the blank by choosing correct option)
a) machinery
b) wages
c) trading
d) profit and loss

Answer 1

B → IS THE ANSWER....

Answer 2

Answer:

‘Wages paid’ for the ‘installation of machinery’ should be debited to machinery account.

Explanation:

It is the amount incurred for buying and installing the machine. The ‘machinery account’ is debited since the machine has to be put to use. The expenses are done to start the ‘working of machinery’. Hence it will be added to the ‘cost of machinery’.  

Therefore the wages for the ‘installation of machinery’ are added to the cost of machinery since without spending the amount for the installation, the machine will not be operational.