=+4. On 1st January, 1960, J. Milford purchases a machine costing £600 from Wheelers Ltd. He estimates that the machine will last nine years and its scrap value will then be £60. Prepare two accounts for the three years to 31st December, 1962, charging depreciation:

(a) on the Straight Line method, and

(b) at 25 % per annum of the Reducing Balance.