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Hi Dear Tutor, I have a question again
Transferring cost of repairs to buildings carried out by company’s own employees using materials from inventory
the correction has been showed below but could you show me what it did then what should be?
Did-?
debit
creditShould-?
debit
creditCorrection
Debit purchase-14000
debit-wages-24000
credit-38000I don’t think you can have typed out the whole question, because the correction does not really make sense.
When materials were bought they will have been debited to purchases. Similarly when the wages were paid they will have been debited to wages.
However, since they were both used for repairs, they should be debited to the repairs account.
So the correction should be to:
debit repairs, and credit purchases, credit wages.
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