A manufacturing company purchased machinery on hire-purchase basis on 1st June, 2017. Soon after the installation the machine gave trouble and finally broke down on 14th August, 2017. The suppliers agreed to replace the machine. A new agreement was signed for that purpose and a sum of ₹500 was paid for cancelling the first agreement by the manufacturing company. The following are the necessary particulars:

You have to prepare the following Ledger Accounts in the books of the manufacturing company for the year ending 31st March, 2018 :

(a) Machinery on H. P. Account

(b) Hire-Purchase Company’s Account

(c) Hire-Purchase Disposal Account

(d) Hire-Purchase Interest Suspense Account..

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1. Date of Purchase 2. Cash Price 3. Initial Payment Particulars 4. Allowance for payments made under cancelled agreement 5. Hire charges 6. Hire Purchase price 7. Number of Instalments 8. Instalment payable every month commencing on 9. All payment were made on due dates 10. Ignore depreciation on machinery 1st Machine 1.6.2017 35,000 6,920 3,240 38,240 18 1.7.2017 2nd Machine 31.8.2017 42,860 9,500 3,840 46,700 24 1.10.2017