Wages paid for installation of a new machinery should be debited to: MCQ with Answer and Explanation

Question
Wages paid for installation of a new machinery should be debited to:
A. Installation Account
B. Cash Account
C. Machinery Account
D. Wages Account
Answer: Option C
Solution (By JKSSB Mock Tests)
All costs incurred to bring a fixed asset to its working condition are capitalized, hence debited to the Machinery account (Real Account rule).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Long Term Capital Gains (LTCG) on the sale of listed equity shares over Rs 1 Lakh is currently taxable at:
A. 15% with indexation
B. 10% without indexation
C. 20% without indexation
D. 30% with indexation
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Under Section 112A, LTCG on listed equity shares exceeding Rs 1 lakh in a year is taxed at 10% without the benefit of indexation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In the 'Finance Act, 2023', which change was introduced for the new income tax regime?
A. Abolished the new regime
B. Increased tax rates
C. No change
D. Made default tax regime with more exemptions
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
The new regime was made the default regime from FY 2023-24, with certain reliefs.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Goodwill brought in by a new partner in cash is distributed among old partners in:
A. Equal ratio
B. Old profit-sharing ratio
C. New profit-sharing ratio
D. Sacrificing ratio
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
The premium for goodwill brought by incoming partner is distributed to old partners in their sacrificing ratio.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Computer 5279 Static General Knowledge 6362 English 15164 Current Affairs 575 History GK 3374
Practice Mix
The difference between simple interest and compound interest on a certain sum of money for 2 years at 9% per annum is Rs. 81. Find the sum.
The process by which plants lose water in the form of liquid droplets is:
The 'Vote on Account' is used to:
Software programs that are custom engineered for banking automated teller machines (ATMs) to connect securely to institutional transaction ledger networks are classified as:
Which is the capital of South Africa (legislative)?