From the following information of M/s Gold Star, prepare Machinery Account for the three years ending on 31st March, 2019:

Method of Depreciation is Written Down Value Method and Rate of Depreciation is `20%` p.a.

Explanation

1. `{:("Calculation Gain/Loss on Sale of Machine: ",₹),("Book value as on 1st April, 2018","3,20,000"),("Less: Depreciation up to date sale for 6 months "(Rs 3,20,000xx20//100xx6//12) , "32,000"),(,"2,88,000"),("Less: Sale proceeds ","2,25,000"),("Loss on Sale of Machine ","63,000"):}`
2. The amount spent on repairs of Machinery || Rs 10,000 on 1st April, 2017 is of revenue nature and is not of Capital nature. Hence it not debited to Machinery Account.