Depreciation, Provisions and Reserves

Reliance Ltd. Purchased a second hand machine for ` 56,000 on October 01,
2011 and spent ` 28,000 on its overhaul and installation before putting it to
operation. It is expected that the machine can be sold for ` 6,000 at the end
of its useful life of 15 years. Moreover an estimated cost of ` 1,000 is expected
to be incurred to recover the salvage value of ` 6,000. Prepare machine account
and Provision for depreciation account for the first three years charging
depreciation by fixed installment Method. Accounts are closed on March 31,
every year.