Tony Prem started in business on 1 September 20*6. His financial year end is 31 August. He made the following purchases of machinery:

■ 1 September 20*6: two machines costing £14,000 each
■ 1 March 20*7: one machine costing £12,000
■ 1 September 20*7: one machine costing £16,000.

None of the machines is expected to have any value at the end of its useful life.

Tony charges depreciation at 25% per annum using the straight line method, calculated on a monthly basis.

Required

a) Prepare the machinery account.
b) Prepare the provision for depreciation of machinery account.
c) Prepare balance sheet extracts at 31 August 20*7 and 31 August 20*8.