On 1st August, 2022 Happy & Lucky Associates, a firm purchased a machine for ₹ 3,90,000 and spent ₹ 10,000 on its installation. It decided to provide depreciation @15% per annum, using written down value method. On 3

On 1st August, 2022 Happy & Lucky Associates, a firm purchased a machine for ₹ 3,90,000 and spent ₹ 10,000 on its installation. It decided to provide depreciation @15% per annum, using written down value method. On 30th November, 2025 the machine was dismantled at a cost of ₹ 5,000 and then sold for ₹ 1,00,000. On 1st December, 2025 the firm acquired and put into operation a new machine at a total cost of ₹ 7,60,000. Depreciation was provided on the new machine on the same basis as had been used in the case of the earlier machine. The firm closes its books of account every year on 31st March. Prepare Machinery Account and Depreciation Account for four accounting years ended 31st March, 2026.