A company starts in business on 1 January 19X3, the financial year end being 31 December. You are to show:

{a) The machinery account

{b) The provision for depreciation account

(c) The balance sheet extracts for each of the years 19X3, 19X4, 19X5, 19X6.

The machinery bought was:
19X3 1 January 19X4 1 July 1 October 19X6 1 April 1 machine costing £800 2 machines costing £500 each 1 machine costing £600 1 machine costing £200 Depreciation is at the rate of 10 per cent per annum, using the straight line method, machines being depreciated for each proportion of a year.