2. On July 01, 2010, Ashok Ltd. Purchased a Machine for ₹1,08,000 and spent ₹12,000 on its installation. At the time of purchase it was estimated that the effective commercial life of the machine will be 12 years and after 12

years its salvage value will be ₹12,000.

Prepare machine account and depreciation Account in the books of Ashok

Ltd. For first three years, if depreciation is written off according to straight

line method. The account are closed on December 31st, every year.