XY Ltd provided for depreciation of its machinery at 20% per annum on cost

XY Ltd provided for depreciation of its machinery at 20% per annum on cost. It charges for a full year in the year of purchase but no provision is made in the year of sale/disposal. Financial statements are prepared annually to 31 December. 2018 January 1 July 1 2019 2020 October 7 November 5 2021 February 4 February 6 October 11 Bought machine 'A' £10,000 Bought machine 'B' £16,000 Bought machine 'C' £8,000 Sold machine 'A' - proceeds £5,500 Bought machine 'D' £12,000 Sold machine 'B' - proceeds £3,000 Bought machine 'E' £12,000 Exchanged machine 'D' for machinery valued at £7,000 REQUIRED: Prepare (a) The machinery account for the period 1 January 2018 to 31 December 2021. MACHINERY A/C (b) The accumulated provision for depreciation on machinery account, for the period 1 January 2018 to 31 December 2021. ACCUMULATED FOR DEPRECIATION A/C (c) The disposal of machinery accounts showing the profit/loss on sale for each year. DISPOSAL A/C (d) The balance sheet extract for machinery at (i) 31 December 2020 and (ii) 31 December 2021. BALANCE SHEET EXTRACT AS AT 31 DECEMBER Year 2020 Year 2021