Q # 1 Fazil Company purchased a machine on April 01, 2001 at a list price of Rs. 60,000 with a trade discount at 5%. The credit terms were 2/10, n/30.The payment was made within discount period. The company incurred the following additional expenditure.4% Sales Tax on the cash price of Machine.Custom duty Rs. 11,000Installation and testing cost Rs. 13,000The Machine was insured against fire and premium paid Rs. 3,500Insurance in transit Rs. 5,000Fright in Rs. 2,500INSTRUCTION: Compute the cost of Machine

Asset refers to any economic value resource for an individual, corporation or a country. It…

Answered: Q # 1 Fazil Company purchased a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q # 1 Fazil Company purchased a machine on April 01, 2001 at a list price of Rs. 60,000 with a trade discount at 5%. The credit terms were 2/10, n/30.

The payment was made within discount period. The company incurred the following additional expenditure.

4% Sales Tax on the cash price of Machine.
Custom duty Rs. 11,000

Installation and testing cost Rs. 13,000

The Machine was insured against fire and premium paid Rs. 3,500
Insurance in transit Rs. 5,000
Fright in Rs. 2,500

INSTRUCTION: Compute the cost of Machine

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