M/s Babulal & Company purchased a Machinery, for a sum of Rs. 1,00,000, its life was estimated three years. Its residual value is estimated at Rs. 12,500. You are required to depreciate the asset on Depreciation Fund Method, investment to carry 5% interest.

The amount to be annually set aside is given to be Rs. 27,769.

Prepare Depreciation Fund Account and Depreciation Fund Investment Account for all the three years.