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QUESTION 2. Mitra Co Ltd is a manufacturing company closing its accounts at 30 June each year. The company has the following balances in its Plant and Machinery Register at 30 June 2015. At Cost Machines at Cost, acquired on 1 January 2013 Rs 50,000 Machines at Cost, acquired on 1 July 2013 Rs 100,000 During the year to 30 June 2016, the following transactions occurred. 1. On 01 July 2015, one machine was acquired at a cost of Rs.50,000. 2. On 01 September 2015, one machine was acquired at a cost of Rs.30,000. 3. On 01 August 2015, one machine originally costing Rs.25,000 was sold for Rs.10,000 making a profit on disposal of Rs3,000. 4. On 01 January 2016, one sewing machine costing Rs.35,000 which was acquired on 01 July 2013 was sold for Rs.5,000. Mitra Co Ltd provides for depreciation of all its Plant and Machinery at a rate of 20% per annum using the straight-line method on a pro-rata basis. You are required to: (a) Calculate the profit or loss on disposal at 30 June 2016 for machine sold on 01 January 2016 (Note 4). (5 Marks) (b) Draw the following relevant ledgers (i) Plant & Machinery at Cost Account (ii) Plant & Machinery Depreciation Account (iii) Plant & Machinery Accumulated Account (iv) Plant & Machinery Disposal Account (10 Marks)