Illustrationg (Straight Line Method) On 1 January 2008, a machinery was purchased by Farzana for 20,000. On 1 July
2009 additions were made to the extent of 4,000. On 1 April 2,0 1 0 further additions
were made to the extent of 2,560. On 30 June 2011, a machinery, the original value
of which was 3,200 on 1 January 2008 was sold for 2,400. Farzana closes her
books on 31 December each year.
Show the machinery account for four years from 2008 to 20011 in the books of
Farzana, If depreciation is charged at 10% under original cost method.