XY Ltd provides for depreciation of its machinery at 20 per cent per annum on cost; it charges for a full year in the year of purchase but no provision is made in the year of sale/disposal.

Financial statements are prepared annually to 31 December.

Prepare

(a) The machinery account for the period 1 January 2015 to 31 December 2018.

(b) The accumulated provision for depreciation on machinery account, for the period 1 January 2015bto 31 December 2018.

(c) The disposal of machinery accounts showing the profit/loss on sale for each year.

(d) The statement of financial position extract for machinery at (i) 31 December 2017 and (ii) 31December 2018.

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2015 January 1 July 1 Bought machine 'A' 10,000 Bought machine 'B' 6,000. 2016 March 31 Bought machine 'C' 8,000 2017 October 7 Sold machine 'A' - proceeds 5,500 November 5 Bought machine 'D' 12,000 2018 February 4 February 6 Sold machine 'B' - proceeds 3,000 Bought machine 'B' 9,000 Exchanged machine 'D' for machinery valued at 7,000