Company C purchased a machine costing Rs. 15, 00,000 for its production process. It paid freight Rs. 25000. Cartage Rs. 2000 and installation charges Rs 18000. The company spent an additional amount of Rs 40000 for testing and preparing the machine for use As per AS-10, the amount that should be recorded as the cost of machine would be: A Rs 1585000 B Rs. 1500000 C Rs. 1525000 D Rs. 1565000

Company C purchased a machine costing Rs. 15, 00,000 for its production process. It paid freight Rs. 25000. Cartage Rs. 2000 and installation charges Rs 18000. The company spent an additional amount of Rs 40000 for testing and preparing the machine for use As per AS-10, the amount that should be recorded as the cost of machine would be: A Rs 1585000 B Rs. 1500000 C Rs. 1525000 D Rs. 1565000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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