Model: Replacement of assets The Tiruchirapalli Municipal Corporation replaces part of its existing water mains with larger mains at a cost of Rs.50,00,000 the original cost of laying the old mains was Rs.10,00,000 and the present cost of laying those mains would be four times the original cost. Rs.1,00,000 was realized by the sale of old materials and old materials of Rs.3,00,000 were used in the replacement and included in the cost given above. Give the journal entries to record the above and show the allocation of expenses between revenue and capital along with replacement account.
