On 1st April, 2017, Amit Kumar purchased five machines for Rs. 60,000 each. Depreciation @ 10% p.a. on initial cost has been charged from the Profit and Loss account and credited to Provision for Depreciation Account.
On 1st April, 2018, one machine was sold for Rs. 50,000 and on 1st April, 2019 another machine was sold for Rs. 50,000. An improved model costing Rs. 1,00,000 was purchased on 1st October, 2018. Amit Kumar closes hi books on 31st March each year.
You are required to show:
1. Machinery Account
2. Machinery Disposal Account
3. Provision for Depreciation Account for the period of three accounting years ended 31st March, 2020.
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