On 1st January, 2016, Engineer purchased machinery from Marshall on hire purchase system, over a period of three years. ₹5,000 was payable on delivery on 1st January, 2016 and the balance by following instalments on 31st December in each year.

Marshall charged interest at 10% p.a. on the yearly balances. The cash value of the machinery on delivery was ₹30,000. Depreciation at the rate of 20% p.a. on diminishing balances was written off in each year. Engineer paid all the instalments on the due date.

Show the Machinery Account and Marshall’s Account in the books of Engineer for the three years to 31st December, 2018.

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2016-10,000; 2017-10,000; 2018 - Balance amount.