Prepare ledger accounts to report the transactions and events of questions C8.1 and C8.2.

Data from C8.1

The Biscuit Manufacturing Company commenced business on 1 January Year 1 with capital of £22,000 contributed by the owner. It immediately paid cash for a biscuit machine costing £22,000. It was estimated to have a useful life of four years and at the end of that time was estimated to have a residual value of £2,000. During each year of operation of the machine, the company collected £40,000 in cash from sale of biscuits and paid £17,000 in cash for wages, ingredients and running costs.

Data from C8.2

The biscuit machine in question C8.1 was sold at the end of Year 4 for a price of £3,000.