On the basis of the information given below, answer the following question. Z.Ltd. purchased machine having life of 3 years on 1st April 2008 for Rs 50,000. It is decided to provide for the replacement of the machine at the end of 3 years by setting - up a Sinking fund. Investment will fetch interest at 12 %p.a. Sinking fund tables shows that Rs. 0.296349 invested each year will produce Rs 1 at the end of 3 years at 12 % p.a. The investments are sold for Rs 28,500. |