BUILDOUT LIMITED Assume that your are working as a Fixed Asset Manager in BUILDOUT LIMITED provides You are in a process of closing the accounts for machinery and its accumulated depreciation. BUILDOUT LIMITED provides depreciation on plant and machinery at 20% per annum on diminishing balance method. On July 1, 2017 following are the balances:

Particulars "Amount "

Plant and Machinery 712,000

Accumulated Depreciation 24,000

Depreciation is provided from the month of purchase till the month of disposal. It was discovered during 2017-2018 that: A machine which was purchased on January 1, 2017 for 100,000 was traded-in, on March 31, 2018 for a new and more sophisticated machine. The disposal was not recorded and the new machine was capitalised at 120,000 being the net amount paid to the supplier. The trade-in allowance amounted to 50,000. a) It was decided to correct the above mistakes while finalising the accounts for the year ended June 30,2018. Only one machine was purchased during the year ended June 30, 2018 costing 60,000. The machine was received in the factory on October 1, 2017 and was installed on January 1, 2018.

Required: You are require to prepare Journal Entries for each account.