On 1 April 2021 a business purchased a machine for $\$ 120000$ with an estimated residual value
of $\$ 12000$.
On 1 July 2022 the machine was sold for $\$ 100000$.
Machinery is depreciated at the rate of 20% per annum using the straight-line method. Depreciation is calculated for each month of ownership.
Which entry should be made in the provision for depreciation of machinery account for the disposal of the machine?
1 )
$\$ 21600{\text{ }}credit$
2 )
$\$ 21600{\text{ }}debit$
3 )
$\$ 27000{\text{ }}credit$
$\$ 27000{\text{ }}debit$
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