On 1st January, 2005, a limited company purchased a machine for Rs. 36,000 and spent Rs. 2,000

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On 1st January, 2005, a limited company purchased a machine for Rs. 36,000 and spent Rs. 2,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be Rs. 6,000 at the end of the tenth year.

Give Machine Account and Depreciation A/c in the books of Company for 4 years after providing depreciation by Fixed Installment Method. The books are closed on 31st December each year.

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