Urja industries Ltd. purchased on 1st January, 2016, a machinery for ₹ 1,60,000. On 1st April, 2017, it purchased additional machinery costing ₹ 96,000

Urja industries Ltd. purchased on 1st January, 2016, a machinery for ₹ 1,60,000. On 1st April, 2017, it purchased additional machinery costing ₹ 96,000. On 1st September, 2018 the machinery purchased on 1st January, 2016 was sold for ₹ 84,000 and on same date fresh machinery was purchased at cost of ₹ 1,50,000. Depreciation is provided at 10% p.a. on diminishing balance method every year. Accounts are closed each year on 31st December. Show machinery account for 3 years.

[Ans. Loss on Sale of Machinery ₹ 36,960; Balance of Machinery A/c on 31st December 2018 ₹ 2,24,920.]