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The Cost Of Repairing Damage To A Machine Or Equipment During The Installation Is Treated As A Capital Expenditure Or A Revenue Expenditure The answer is “False” , as the cost of repairing damage to a machine or equipment during the installation is charged to Profit And Loss Account rather than it is added to the cost of machine / equipment according to IAS 16.12. The cost is not debited or added to machine or equipment account as the machine or equipment is in the location and condition necessary for operating in the same manner as intended by the management. Also, it is a repair expense ( Revenue Expenditure ) during day to day working, so it does not enhance / increase the cost of machine or equipment as it is not a Capital Expenditure . Initially, the machine / equipment is recorded at cost and all the necessary costs incurred to bring the machine into working condition for its intended use are added to the costs of machine or equipment, otherwise, charged to profit and loss...

Purchased Paper For Printing Journal Entry If a company purchased paper for printing for cash or by cheque then the journal entry is to debit stationary account and credit cash / bank account. Here, stationary is an expense account and cash or bank account is a Current Asset . If we purchased paper for printing on account, then we debit stationery account and credit accounts payable account instead of cash account. Purchased stationery for personal use and for office use If we purchased stationery for personal use for cash, then we debit Drawings Account and credit Cash Account. Example: Purchased stationery worth 8,000 for office use and 2,000 for personal use For Office Use                                  Stationary a/c  Rs. 8000                                             ...