What are the elements of the accounting environment? How do these elements affect financial statements? Why are these important? How do these elements affect comparability between companies? Provide examples.Looking for an answer in 125-150 or so words

Exercise 11-21.docx 

1)On 1st January, 2000 Shakti & Co. purchases machinery worth Rs. 50,000. On 1st July, 2002, it buys additional machinery worth Rs. 10,000 and spends Rs. 1,000 on its erection. The accounts are closed each year on 31st December. Assuming the annual depreciation to be 10% show the machinery account for 5 years under (1) Straight Line Method (2) Diminishing Balance Method2)Neha & company whose accounting year is the calendar year, purchased on 1st April, 2006 machinery costing Rs. 30,000. It purchased further machinery on 1st October, 2006 costing Rs. 20,000 and on 1st July, 2007 costing Rs. 10,000. On 1st January, 2008, one third of the machinery which was installed on 1st April, 2006 became obsolete and was sold for Rs. 3,000. Show how the machinery account would appear in the books of Neha & company, assuming that machinery was depreciated by fixed installment at 10% p.a3)On 1.1.2008 one-third of the machinery which was purchased on 1.4.2006 became obsolete and was sold for Rs. 6,000. The machinery was to be depreciated by Fixed Instalment Method at10% p a.