Model: Replacement A/c—Preparation Electric Supply Ltd. rebuilt and re-equipped one of their mains at a cash cost of 80,00,000. The old mains, thus, superseded cost for 30,00,000. The capacity of the new main is double that of old main. Rs.1,40,000 was realized from sale of old materials. Four old motors valued as Rs.4,00,000 salvaged from the old main were used in the reconstruction. The cost of labour and material now is, respectively, 30% and 25% higher than when the old main was built. The proportion of labour to material in the main then and now is 2:3. Show the journal entries for recording the above transactions if the accounts are mentioned under double account system.
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