Machinery Account should be debited for wages paid for installation of machinery.
What is the journal entry for wages paid?
Debit the wages, salaries, and company payroll taxes you paid. This will increase your expenses for the period. When you record payroll, you generally debit Gross Wage Expense and credit all of the liability accounts.
What is the journal entries for paid wages to erect a machine RS 1000?
Answer: Machinery a/c dr ₹1000. To cash a/c ₹1000. Machinery a/c is debited because unless the machinery is put to use, all the expenses made …
Is Commission a debit or credit?
Under the cash basis of accounting, you should record a commission when it is paid, so there is a credit to the cash account and a debit to the commission expense account. You can classify the commission expense as part of the cost of goods sold, since it directly relates to the sale of goods or services.
Is prepaid insurance increase by a debit?
You pay upfront and use the insurance throughout the year. When you buy the insurance, debit the Prepaid Expense account to show an increase in assets. And, credit the Cash account to show the loss of cash. Each month, adjust the accounts by the amount of the policy you use.
What was the journal entry for wages paid, Rs How are wages paid on installation of machinery?
Paid wages on installation of Machinery. Journal Entry? Wages paid on installation of machinery is treated as a capital expenditure and would be recorded using following accounting entry: Queries asked on Sunday & after 7pm from Monday to Saturday will be answered after 12pm the next working day.
What is the journal entry of the installation charges of the machinery?
It is Machinery A/c…dr There is no journal entry of this particular transaction. Since installation charges on machinery are paid while the machinery is bought,it is considered to be a single transaction. The cost of installation must be added to the cost of assets itself.
What is the journal entry for salary paid in advance?
Journal Entry for Salary Paid in Advance Salary paid in advance is also known as prepaid salary (it is a prepaid expense). It is the amount of salary paid by an entity in advance but the corresponding work-effort equivalent to the advance salary paid is yet to be received from the employee. The money paid relates to a future accounting period.
