On January 01, 2010 Raj and Son’s purchased a second hand machinery costing Rs.3,00,000 and spent 20,000 on its overhauling. It also spent 10,000 on transportation and installation of the machinery. It was decided to provide for depreciation @ of 10% on Written Down Value Method. The machinery was destroyed by the fire on July 31, 2013 and an insurance claim of 80,000 was admitted by the insurance company.
Prepare Machinery Account, Accumulated Depreciation Account and Machinery Disposal Account assuming that the company closes its books on December 31 every year.