Question $5$:

A machine was purchased on $2$ nd July $2016$ for $$1,200,000.$ It was traded in for new one whose price was $$1,000,000$ on $2$ nd June $2020$ and the company paid $$300,000$ for this exchange. The policy of the company is to charge depreciation for its PP&E at $10\%$ on cost per annum. Depreciation is charged in full during the year of purchase, but no depreciation is charged in the year of disposal.

Required:

Prepare the following accounts for the year ended ${31}^{st}$ December $2020$ :

Machinery account

Accumulated depreciation account

Machinery disposal a$/$c