MGT 101 2nd GDB 20 June To 22 June 2012
Idea Solution
Just idea..!!!!
All the cost will first go to “Capital Expenditure” As UMC has brought machinery for
its business use and based on the information all of us know that (CE) a balance sheet
account with following information .therefore all the cost will first go to “Capital
Expenditure”. (CE) contain the following information
Installing, training, or any other cost to get fixed asset ready to use.
Legal, custom, carriage inward cost for buying machinery
Acquiring asset cost or improvement is made to existing
This account not only has cost of purchasing a fixed asset, but also includes other costs
necessary to get the asset operational. Once machinery is in ready to use all CE moves to
“Fixed Asset” account and ready to be depreciated.
Idea Solution
Just idea..!!!!
All the cost will first go to “Capital Expenditure” As UMC has brought machinery for
its business use and based on the information all of us know that (CE) a balance sheet
account with following information .therefore all the cost will first go to “Capital
Expenditure”. (CE) contain the following information
Installing, training, or any other cost to get fixed asset ready to use.
Legal, custom, carriage inward cost for buying machinery
Acquiring asset cost or improvement is made to existing
This account not only has cost of purchasing a fixed asset, but also includes other costs
necessary to get the asset operational. Once machinery is in ready to use all CE moves to
“Fixed Asset” account and ready to be depreciated.
