The mains of water works cost Rs. 60,000 and it is estimated that they will last for five years, after which the scrap is expected to realise Rs. 10,000. A Sinking Fund is to be raised for the replacement of the asset, considering the market rate at which investment may be made is 5% per annum.

Prepare the Sinking Fund Account and Sinking Fund Investment Account Re. 0.180975 per annum invested at 5% per annum to Rs. 1 at the end of five years.