What is the journal entry for paid?

When an account payable is paid, debit accounts payable and credit cash. Payroll entry. When recognizing payroll expenses, debit the wages expense and payroll tax expense accounts, and credit the cash account.

What will be the treatment of installation charges paid at the time of purchase of a machinery?

installation expense is not a revenue expenditure, it is a capital expenditure.. so it is not recorded separately but capitalised to the asset…. In this case 5000 is paid in cash on installation of machinery… Cash is going out,so it should be credited…

What is the journal entry for installation charges of machinery?

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.

Should installation costs be capitalized?

Cost includes all expenditures directly related to the acquisition or construction of and the preparations for its intended use. Such costs as freight, sales tax, transportation, and installation should be capitalized. Additions that increase the service potential of the asset should be capitalized.

What is the journal entry for commission received in advance?

Originally Answered: What is the journal entry of commission received in advance? Cash A/c Debit because the cash is (Real Account), and comes in, any type of assets comes in is debit based on Golden rules.

What is the journal entry for paid to Harish on account?

Since, we cash if going out we are crediting cash and since we are paying harish, we credit harish’s account because of the account rule which says that we should credit all incomes, therefore the money is an income for harish, so we credit it to him.

What is the journal entry for repairs on machinery?

The Journal entry for each of the cases is provided below: 1) Rs 500 paid for repair of Machinery. -> Expenses incurred at the time of purchase of assets on its installation are debited to the asset account. Repairs whereas are done after the asset is put to use, hence, it will not be added to the cost of the asset.

What is the journal entry for the purchase of machinery?

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. Perhaps a conceptual answer would help you more.

What is the accounting entry for the wages paid on installation?

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. Have an account? Did’t recieve OTP?

What is the compound journal entry for loan payment made?

Below is a compound journal entry for loan payment made including both principal and interest component; *Assuming that the money was due to be paid to ABC Bank Ltd. The repayment of a secured or an unsecured loan depends on the payment schedule agreed upon between both the parties.

How do you account for installation cost under IFRS?

The cost of installation must be added to the cost of assets itself. According to IFRS standard on PPE, the cost and incidental costs like installation cost to bring the asset into use must be measured and accounted for in order to determine the actual cost of any PPE. Hence you will debit Property, plant and machinery (PPE) and credit cash.