ADDITION AND DISPOSAL OF ASSETS AND DEPRECIATION UNDER Diminishing/ REDUCING BALANCE METHOD
Roy \& Co. purchased a machine for ? \( 1,00,000 \) on 1st January, 2016. On 1st June, it purch another machine for ? 60,000 . On 1st March, 2017, Roy \& Co. sold the second machine (purcl on 1st June, 2016) for ? 50,000 and on the same day purchased another machine for ? 54,000 \& Co. calculated depreciation@20\% under the diminishing balance mathod. The Accounts business were closed every year on 31st December. Show the Machinery account for the two ending 31st December 2016 and 31st December 2017.
ins. : Depriciation on \( 2016-? 27,000 ; 2017-? 26,767 \); Loss on Sale \( ? 1,233 \), Balan Machinery \( \mathrm{A} / \mathrm{c} \) on \( 31 \cdot 12.17 \) - ? \( 1,09,000 \) ]