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On 1st April, 2005, Z Ltd. …

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On 1st April, 2005, Z Ltd. purchased machinery for 1,20,000 and on 30th September 2006, it acquired additional machinery for 20,000. On 30.06.2007 one of the original machine (purchased on [0.4 * 0.2005) which had cost 5,000 was found to have become obsolete and was sold as scrap for ₹500. On the same date a new machine was purchased for ₹8,000. Depreciation is to be charged @15% p.a. on written down value. Accounts are closed on 31st March each year. Show machinery account for the first three years.
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