M Martin bought two machines on credit from Classic machines on 1 January 20x3 for $20 000 each. He charged the depreciation on the machines at 20% per annum for each year by the straight ling method. His depreciation according to the months of ownership Mis policy is to charge One of the machines was sold for $10 500 cash on 30 September 20X5. On the same date, a replacement machine costing $24 000 was bought for cash. Martin's accounting year ends on 31 December each year, REQUIRED (a) Prepare Machinery Account for each of the three years 20X3, 20x4 and 20X5 (b) Prepare the Machinery Disposal Account for 20x5 (d) Prepare the provision for Depreciation Account for the three years 20X3, 20x4 and 20xs ad Previous question

Question

M Martin bought two machines on credit from Classic machines on 1 January 20x3 for $20 000 each. He charged the  depreciation on the machines at 20% per annum for each year by the straight ling method. His depreciation according to the months of ownership Mis policy is to charge One of the machines was sold for $10 500 cash on 30 September 20X5. On the same date, a replacement machine costing $24 000 was bought for cash. Martin's accounting year ends on 31 December each year, REQUIRED (a) Prepare Machinery Account for each of the three years 20X3, 20x4 and 20X5 (b) Prepare the Machinery Disposal Account for 20x5 (d) Prepare the provision for Depreciation Account for the three years 20X3, 20x4 and 20xs ad Previous question