Sialkot Steel Works, a sole proprietorship, recognises depreciation on plant and machinery at 20% per annum reducing balance. On July 1, 2012 the balances on the plant and machinery and accumulated depreciation accounts were Rs. 712,000 and Rs. 240,000 respectively. Depreciation is recognised from the month of purchase. During 2012-2013 it the auditors discovered that a repair which cost Rs. 25,000 and incurred on October 1, 2010 had been capitalised incorrectly. It was decided to correct this mistake while finalising the accounts for the year ended June 30, 2013. Only one machine was purchased during the year ended June 30, 2013 costing Rs. 60,000. The machine was received in the factory on October 1, 2012 and was installed on January 1, 2013.
Required
Problem 1: Create Plant and machinery account and accumulated depreciation account for the year ended June 30, 2013.