1. On 1 July 20x5, Manuel da Costa, the owner of Costa Plenti Manufacturers, bought a new machine for R25 000. He estimated that the machine would have a useful life of 10 years, after which it would have a scrap value equal to 20% of cost.

2. On 1 April 20x6, he bought a second machine for R36 000 and estimated its useful life at 10 years with no scrap value.

3. On 31 March 20x7, he sold the machine bought in 20x5 for R22 000 cash. Assume a year end of 30 June and use the straight-line method for calculating depreciation.

You are required to:

Prepare these properly closed off accounts:

1. Machinery at cost.

2. Asset disposal.

3. Accumulated depreciation.

4. Depreciation.