On 1st April, 2021, Machinery Account of Karan shows a balance of ₹ 96,000 (original cost ₹ 1,20,000). On 1st August, 2021, a machine for ₹ 60,000 was purchased and ₹ 9,000 were incurred for its freight and installation. On 1st Septemeber, 2022, another new machine was purchased for ₹ 50,000 by cheque, but the machine started functioning on 1st November, 2022.

Depreciation was charged @ 10% p.a. by the Straight Line Method. Give the necessary entries in the books of Karan and show Machinery Account for two years ended 31st March, 2022 and 2023.

Anurag Pathak Changed status to publish October 24, 2023