Q4. Metropol Ltd. acquired a machinery for Rs. 5,00,000 on 1St April 2009. Rs. 40,000 were given as wages for its installation. A similar machine was available in the market at Rs. 4,00,000....

Extracted text: Q4. Metropol Ltd. acquired a machinery for Rs. 5,00,000 on 1St April 2009. Rs. 40,000 were given as wages for its installation. A similar machine was available in the market at Rs. 4,00,000. Depreciation was to be charged at 20% p.a. on SLM basis. On 1st April, 2011 a modification was made to machinery to improve its technical efficiency at a cost of Rs. 50,000 which it was considered would extend the useful life by two years. At the same time, the machine was painted at cost of Rs. 10,000 so that it looks new. Routine machine maintenance during the year ending 31St March 2012 is Rs.7,500. Show for the year ending 31St March 2012: i. Machine Account ii. Provision for Depreciation iii. Relevant portions of P&L Account showing revenue charge relating to machine account. iv. Working note should form part of Solution