A Company purchased a three years lease on 1st April, 2004 for Rs. 50,000 and decided to provide for the replacement of lease at the end of three years by setting up a Depreciation Fund. It is expected that the investment will fetch interest @ 5% per annum. Sinking Fund Table shows that in order to provide Rs. 1 at 5% at the end of three year, an investments of Rs. 0.317208 is required. Investments are made to the nearest rupees. On 31st March, 2007, the investment was sold for Rs. 32,520. On 1st April, 2007 the same lease is renewed for a further period of three years by payment of Rs. 55,000.