Reference no: EM131536721

Question: On 1st January, 1959, a firm bought Machinery at a cost of £2,000 and on 1st July, 1960, additional Machinery costing £500. On 1st January, 1961, Machinery which cost £300 on 1st January, 1959, was sold for £160. Additional Machinery was purchased on 1st April, 1961, at a cost of £400. Part of the Machinery, purchased on 1st July, 1960, for £150, was scrapped and sold for £70 on 1st October, 1962. The Machinery had been depreciated annually at 31st December, at the rate of 5 per cent premium calculated on the original cost over the period of its use. Show the accounts recording these transactions for the four years ended 31st December, 1959, 1960, 1961 and 1962.