Answer to Question #62547 in Accounting for Asif

Question

On 01-01-2000 a firm purchases machinery amounting to Rs. 500,000 on 1-07-
2002 it buys additional machine worth Rs. 100,000 and spends Rs. 10,000 on its
erection. The accounts are closed each year on 31st December. The firm charges
annual depreciation @ 10%.
Required:
Machinery Account for 5 years under
(i) Straight line Method (ii) Reducing balance method.