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The Plant and Machinery Account of a Company had a debit balance of 1,47,390 on April 1, 2006. The company was incorporated in April
The Plant and Machinery Account of a Company had a debit balance of 1,47,390 on April 1, 2006. The company was incorporated in April 2003 and has been following the practice of charging full year's depreciation every year on Diminishing Balance system @ 15% p.a. In 2006 it was, however, decided to change the method from Diminishing Balance to Straight Line with retrospective effect from April 2003 and to give effect to the change while preparing the final accounts for the year ending 31st March, 2007, the rate of depreciation remaining same as before. In 2006-07, new machinery was purchased at cost of 50,000. All the other machines were acquired in 2003-04. Show the Plant and Machinery Account from 2003-04 to 2006-07.
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