An engineering company purchased a machine on hire purchase over a period of three years, paying 2,672 on 1 January 2006, and further annual payments of 5,700 due on 31 December 2006, 2007 and 2008. The cash price of the machine was 17,100, the vendor company charging interest at 9 per cent per annum on outstanding balances at the start of each year. Show the appropriate ledger accounts in the purchaser's books for the three years and how the items would appear in the balance sheet at 31 December 2006; depreciation at 25 per cent per annum straight-line is to be charged and interest calculated to the nearest .