On 1st April, 2019, Star Trading purchased 5 Machines for ₹ 60,000 each. On 1st April, 2021, one of the machine was sold at a loss of ₹ 8,000

On 1st April, 2019, Star Trading purchased 5 Machines for ₹ 60,000 each. On 1st April, 2021, one of the machine was sold at a loss of ₹ 8,000. On 1st July, 2022, second machine was sold at a loss of ₹ 12,500. A new machine was purchased for ₹ 1,00,000 on 1st October, 2022.

Prepare Machinery Account for 4 years, assuming accounts are closed on 31st March, each year and depreciation is charged @ 10% per annum as per Straight Line Method.

[Depreciation: 2019 – 20 – ₹ 30,000; 2020 – 21 – ₹ 30,000; 2021-22 – ₹ 24,000; 2022-23 – ₹ 24,500; Sale Proceeds from 1st Machinery – ₹ 40,000; Sale Proceeds from 2nd Machinery – ₹ 28,000. Balance of Machinery A/c as on 1st April, 2023 – ₹ 2,03,000.]