An organization bought 3 years, lease on first April, 2008 for Rs. 50,000. It is chosen to accommodate the substitution of the lease toward the end of 3 years by setting-up a devaluation store. It is normal that speculation will get at 12% p.a. Sinking store tables demonstrates that Re. 0.296349 contributed every year will create Re.1 toward the end of 3 years at 12% for every annum. The ventures are sold for Rs. 28,500.
Give Lease Account, Depreciation Fund Account and Depreciation Fund Investments Account.