8 mark

19. (a) Differentiate between straight line method and written down value method. Or () On 1st July, 2008 a company purchased a machine for Rs.3,90,000 and spent Rs.10,000 on its installation. It decided to provide depreciation @ 15% per annum, using written down value method. On 30th November, 2011 the machine was dismantled at a cost of Rs. 5,000 and then sold for Rs.1,00,000. On 1st December, 2011 the company acquired and put into operation a new machine at a total cost of Rs. 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 company closes its books of account every year on 31st March. Prepare Machinery Account and Depreciation Account for four accounting years ended 31st March 2012