Reliance Ltd. Purchased a second hand machine for `Rs.` 56,000 on October 01, 2011 and spent `Rs.` 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for `Rs` 6,000 at the end of its useful life of 15 years. Moreover an estimated cost of `Rs.` 1,000 is expected to be incurred to recover the salvage value of `Rs.` 6,000 Prepare machine account and Provision for depreciation account for the first three years charging depreciation by fixed installment Method. Accounts are closed on March 31, every year.

Explanation

Balance of provision for depreciation account as on 31.03.15 `Rs,` 18,200