Accounting · Capital and Revenue Expenditure
A manufacturing company purchased a high-precision CNC machine from an overseas supplier. The invoice price was Rs. 40,00,000. The company paid Rs. 4,00,000 as import duty and Rs. 1,00,000 as non-refundable insurance for transit. Freight charges to transport the machine to the site were Rs. 50,00, and a specialized foundation cost Rs. 1,50,000. Technical experts charged Rs. 1,00,000 for installation and testing. Trial run raw material costs were Rs. 20,000 and scrap output was sold for Rs. 5,000. The company also spent Rs. 80,000 on an inauguration party and Rs. 30,000 on training workers. What is the total cost capitalized in the Machinery Account?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Rs. 48,45,000
- 2Rs. 49,25,000
- 3Rs. 48,00,000
- 4Rs. 48,15,000✓
Correct answer
Rs. 48,15,000
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