state gov Kerala (കേരളം) PSC Divisional Accountant Test Series 2025 Accountancy Depreciation, Reserve & Provision
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.?
1
Deducted from the cost of machinery.
2
Debited to Trading account.
3
Debited to Profit and Loss account.
4
Added to the cost of machinery.