For the year ended 31 December 2019, prepare:

- The machinery account (4 marks)

- The accumulated depreciation of the machinery account (4 marks)

- The disposal of machinery account (4 marks)

- An extract of income statement (3 marks)

- An extract of balance sheet

Kam Excavating Co Limited has bought a JCB Machine for Rs 2 million as of 1 March 2018. The JCB was imported from China and the following additional costs were incurred: Import duties: Rs440,000 Installation cost: R560,000 Transportation cost in delivering the JCB on the company site: R310,000 As the business of the Company expanded, it bought another [(23 machine on 1 Iune 2019 for R525 million inclusive of all import duties and other costs. On 30 September 2019, Ram Excavating Limited got an interesting proposal and sold its rst ICB Machine for R522 million. Kam Excavating Ltd has adopted a 31 December as financial year end and has decided on the following policies for its PPE: 1. The company uses the reducing method to depreciate both assets at the rate of 10% per annum. 2. Depreciation is to be provided on a time basis according to the months of use. The useful life estimated for each of the JCB machine was assessed" 4/6 *5 for both ICBs and the scrap value is R5100,000 for first ICE and h .or the second ICB. {44>