M/s Lokesh Fabrics purchased a Textile Machine on April 1, 2001, for Rs 1,00,000. On July 1, 2002, another machine costing Rs 2,50,000 was purchased. The machine purchased on April 1, 2001, was sold for Rs 25,000 on October 1, 2005. The company charges depreciation 15% per annum on the straight-line method. Prepare Machinery account and Machinery disposal account for the year ended March 31, 2006.

M/s Lokesh Fabrics purchased a Textile Machine on April 1, 2001, for R

1.	M/s Lokesh Fabrics purchased a Textile Machine on April 1, 2001, for Rs 1,00,000. On July 1, 2002, another machine costing Rs 2,50,000 was purchased. The machine purchased on April 1, 2001, was sold for Rs 25,000 on October 1, 2005. The company charges depreciation 15% per annum on the straight-line method. Prepare Machinery account and Machinery disposal account for the year ended March 31, 2006.
Answer» M/s Lokesh Fabrics purchased a Textile Machine on April 1, 2001, for Rs 1,00,000. On July 1, 2002, another machine costing Rs 2,50,000 was purchased. The machine purchased on April 1, 2001, was sold for Rs 25,000 on October 1, 2005. The company charges depreciation $15 %$ per annum on the straight-line method. Prepare Machinery account and Machinery disposal account for the year ended March 31, 2006.