A company, which depreciates its machinery at 10% per annum under the Diminishing Balance Method had on 1st April, 2006 Rs. 9,72,000 to the debit balance of Machinery Account. During the financial year 2006-07 a part of the machinery (Purchased on 1st April, 2004 for Rs. 80,000) was sold for Rs. 45,000 on 1st October, 2007 and a new machinery was purchased at a cost of Rs. 1,50,000 and installed on the same date, installation charges being Rs. 8,000. The company wants to change its method of depreciation from Diminishing Balance Method to Straight Line Method with effect from 1st April, 2004 and adjust the difference before 31st March, 2007. The rate of depreciation remains the same as before.

Prepare Machinery Account from the above particulars.