Gurman & Co. purchased machinery for ₹ 40,000 on 1st October, 2020. Depreciation is provided @ 10% p.a. on the Diminishing Balance

Gurman & Co. purchased machinery for ₹ 40,000 on 1st October, 2020. Depreciation is provided @ 10% p.a. on the Diminishing Balance. On 31st January, 2023, one-fourth of the machinery was found unsuitable and disposed off for ₹ 5,600. On the same date new machinery at a cost of ₹ 15,000 was purchased. Write up the Machinery Account for the years ended 31st March, 2021, 2022 and 2023. Accounts are closed on 31st March each year.

[Loss on Sale of Machinery – ₹ 2,237; Balance in Machinery A/c – ₹ 37,835.]