A bakery purchased equipment on hire purchase over a period of three years, paying $£ 2,616$ on 1 January 2012, and further annual payments of $£ 12,000$ due on 31 December 2012, 2013 and 2014.

The cash price of the equipment was $£ 24,000$, the vendor company charging interest at $6 \%$ per annum on outstanding balances.

Show the appropriate ledger accounts in the purchaser's books for the three years and how the items would appear in the statement of financial position at 31 December 2012; depreciation at $20 \%$ per annum straight line is to be charged and interest calculated to the nearest $£$.