Basic query in accounting

This query is : Resolved

pavankumar (Querist)
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08 October 2013 Whether below entry are correct?
If cost of self-construced asset(Machinery)=Rs4,50,000 Outside price(If we purchase)=Rs 6,00,000.
Machinery a/c Dr 4,50,000
To Cash a/c 4,50,000 (Actual cost)

If cost of self-constructed asset(Machinery)=Rs6,00,000 Outside price(If we purchase)=Rs 4,50,000.
Machinery a/c Dr 6,00,000
To cash a/c 6,00,000 (Actual cost)

I will be very much thankful to you.

Arun Biyani

Arun Biyani (Expert)
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08 October 2013 yes.. no need to see what is there outside.. what is your cost is to be capitalized.. so you are correct in both case..

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