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From the following transactions of a concern, prepare the Machinery Account for the year ended 31st March, 2019:
`{:("1st April, 2018 " , : "Purchased a second-hand machinery for Rs 40,000."),("1st April, 2018 ",:"Spent Rs 10,000 on repairs for making it serviceable."),("30th September, 2018",:"Purchased additional new machinery for Rs 20,000."),("31st December, 2018 ",:"Repairs and renewal of machinery Rs 3,000."),("31st March, 2019",:"Depreciate the machinery at 10% p.a"):}`

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Verified by Experts

The correct Answer is:
[Balance of Machinery A/c on 1st April, 2019 - Rs 64,000.]
The amount spent on repairs and renewal of machinery Rs 3,000 on 31st December, 2018 is of revenue nature and not of capital nature and hence not debited to the Machinery Account.
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