Question
A company purchases machinery for ₹10 lakhs and incurs
₹1 lakh on its installation. The accountant records the total ₹11 lakhs under the fixed asset head. However, a junior accountant argues that the installation should be treated as a revenue expense. Considering the nature of the transaction and accounting principles, how should this cost be classified?Solution
Installation cost is necessary to bring the asset to its working condition. Hence, it's capitalised along with the cost of the asset.
- Statements:
Only Digit is Number
Some Digit are Word
Some Word are Letter
Conclusions:
I. Some Number are Letter Statements: All numbers are alphabets.
All alphabets are vowel.
No vowel is digit.
Conclusions:I. No number is digit.
II...
Statements: Some sweaters are coats.
All coats are shawls.
Conclusions: I. Some sweaters are shawls.
...
Statements : Some pixels are pictures.
All pictures are resolution.
No resolution is a camera.
Conclusions: All resolution bein...
In the question below some statements are given followed by three conclusions I, II and III. You have to take the given statements to be true even if t...
Statements:
Only a few balloons are cakes.
All cakes are knife.
Some knife are ribbons.
Only a few ribbons are candles.
...Read the given statements and conclusions carefully. You have to take the three given statements to be true even if they seem to be at variance from co...
Statements: Some nails are hairs.
...
Statement:
All badmintons are rackets.
Some rackets are rubbers.
No rubber is a string.
Conclusion:
I. Some strin...
Statements: Some news are telecasts.
All telecasts are satellites.
All satellites are emissions.
Conclusions: ...
