A Company whose accounting year is the financial year, purchased on 1

st April, 2003 a Machinery costing Rs. 60,000. Its working life was estimated to be four years, at the end of this period its residual value will be Rs. 10,000. Charging 5%

interest per annum, prepare Machinery Account for four years using Annuity Method and also show the amount that will be charged to the Profit and Loss Account every year. According to Annuity Table to write Rs. 25 @ 5% interest per annum the annual amount of depreciation is Rs. 7.05.