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 ICB Machine for Rs 2 million as of 1 March 2018. The [CB was imported from China and the following additional costs were incurred: Import duties: Rs440.000 Installation cost: R560.000 Transportation cost in delivering the ]CB on the company site: R510.000 As the business of the Company expanded, it bought another ICB machine on 1 June 2019 for RsZ.5 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 nancial 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 to be 10 years for both 1635 and the scrap value is R5100,000 for rst ICB and $220,000 for the second ICB