Accounting · Capital and Revenue Expenditure
ABC Ltd., Delhi, paid freight of Rs. 5,000 for bringing one Sortex machine from Mumbai to Delhi which will be used in rice processing. What will be the treatment of freight paid in the books of ABC Ltd.?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Added to the cost of machinery.✓
- 2Debited to Profit and Loss account.
- 3Debited to Trading account.
- 4Deducted from the cost of machinery.
Correct answer
Added to the cost of machinery.
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