alleryStart learning →Wages of Rs 3,000 for installing a machine were debited to wages. Rectify.
ADebit Wages, credit Cash
BDebit Machinery, credit Wages
CDebit Wages, credit Machinery
DDebit Machinery, credit Cash
Answer & Solution
Correct answer: B. Debit Machinery, credit Wages
Installation wages are a capital cost of the machine, so Machinery is debited and Wages credited.
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