effect of entry
Pranay Dubey (51 Points)
21 August 2018repairs to machinery of rs 10000 was wrong capitalised to machinery account and thereon charged 20% depriciation
please reply
rectify if i am wrong
first of all my profit will go down by 10000 becouse i will charge 10000 to repairs
my entry will be
repairs to machinery a/c debit (nominal a/c)
To machinery account a/c
and then i will increase my profit by 2000 that i will credit to depriciation
a/c
please reply