Question 3 (27 marks) - Disposal of non-current assets Delight Textiles commenced business on 1 January 2012. During the year, it acquired the following machines; 1. 1 January 2012: Machine bought on credit from Windhoek Motors for N\$150000. 2. 1 July 2012: Machine bought and paid by cheque N\$120000. It was decided that depreciation is to be provided at a rate of 15% per annum, using the straightline method on the basis that depreciation is to be calculated on assets in existence at the end of each year from 1 January 2010 and to all future accounting periods. No depreciation is charged in the year of disposal. The machine costing N\$120000 was then sold on credit on 1 July 2014 for N\$ 95700 to Otavi Butchery CC. Financial statements are prepared annually to 31 December. You are required to prepare the following accounts in the general ledger of Delight Textiles a) Machine (8 marks) b) Accumulated depreciation on machine (14 marks) c) Asset disposal account to record the sale of the machine