6.4 The following is an extract from the balance sheet of E. Pesenti as at 31 March 20X1:

£

72,000 18,000 54,000 On 2 July 20X1, Pesenti purchased a new machine for £33,000 cash. On 30 November 20X2 he sold a machine for £13,500 cash. It had been purchased in April 20X0 for £30,000. On 1 December 20X2 he bought a new machine for which he paid £31,500 plus delivery charges of £1,200. The cost of installing the machine was £300. Pesenti depreciates machinery on a straight-line basis over four years, assuming zero residual value. A full year’s depreciation is charged in the year of purchase; no depreciation is charged in the year of disposal.

Show the ledger accounts to reflect the above transactions and the operation of Pesenti’s depreciation policy, for the two years ended 31 March 20X3.