Pass the entries for purchase of following Assets
Furniture and Fixtures
8 Chairs purchased @ 1000 each from DD Furnishers.Rs 300 freight was paid extra for delivery of chairs
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Furniture and Fixtures:
Office Furniture a/c Dr 8300
To DD Furnitures a/c 8300
(Freight of Rs 300/- is capitalized)
Computers
5 Computers purchased for 30000 each from Vijay Computers.They took Rs 1000 per computer extra for installation
Later, computer RAM got damaged.New RAMof 1 GB was purchased by cash for Rs 1500 to existing RAM of 1GB
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Office Computer a/c Dr 155000
To Vijay Computers a/c 155000
( 5 computers *30000 + 1000*5 computers)
Repairs and Maintenance a/c Dr 1500
To Cash a/c 1500
Car
Car Purchased Rs 500000+ Rs 30000 Registration charges from DD Motors .
He also paid cash Rs 10000 to get car accessories and Rs 2000 to get car petrol fuel tank full
After 6 months, Car met with an accident, he paid Rs 70000 to get car repaired and Rs 40000 to get CNG fitted into car to Ravi Mechanic
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Car a/c Dr 540000
To DD Motors a/c 540000
(Accessories Of Rs.10000 Being Capitalized.)
Fuel Expense a/c Dr 2000
To Cash a/c 2000
Repair and Maintenance of car a/c Dr 70000
To Cash a/c 70000
(Repairs expenses Charged to P & L a/c)
Car a/c Dr 40000
To Cash a/c 40000
(CNG fitted charges being capitalized.)
Machinery
10 April Machinery purchased for Rs 1000000 from AB Machineries
15 April Rs 30000 cash was paid to labor to get machinery installed.
18 April Rs 80000 was paid for technical inspection and commissioning of machinery and 60000 for post installation maintenance to Alex Engineers
20 April Machinery was finally installed and production started
-a-
On 10 th April
Machinery WIP a/c Dr 1000000
To AB Machineries a/c 1000000
On 15 th April
Machinery WIP a/c Dr 30000
To Cash a/c 30000
( Labor charges capitalized)
On 18 th April
Machinery WIP a/c Dr 80000
Repair and Maintenance Expense a/c Dr 60000
To Alex Engineers a/c 140000
Alex Engineers a/c Dr 140000
To Bank a/c 140000
On 20 th April
Machine a/c Dr 1110000
To Machine WIP a/c 1110000