Yakima Wheat Company acquired harvesting equipment for Rs 90,000 with an expected life of 5 years and Rs 10,000 as residual value. During its fourth year, expenditure related to equipment were as follows:

Oiling and greasing Rs 200

Replacement of belts and hoses Rs450

Major overhauling including replacement of engine at the end of year, incurring cost Rs 21000. It is expected to extend the life of machine by 2 years. The residual value is now expected to Rs 12,000 instead of Rs 10000.

a) Show how the above items will appear in the income statement and balance-sheet of the fourth year. B)What amount as depreciation expenses will be charged in the P&L statement of fourth and fifth years.