A piece of Machine acquired on January 03, 2001 at cost of RS. 25,000, has an estimated useful life of five years and an estimated residual value of RS. 5,000.

1. What was the annual amount of depreciation for the years 2001, 2002 and, 2003, using the straight-line method of depreciation?
2. What was the book value of equipment on January 01, 2004?
3. Assuming that equipment was sold on January 02, 2004, for RS/ 10,500, journalize the entry to record the sale.