Bulwell Aggregates Ltd wish to expand their transport fleet and have purchased three heavy lorries with a list price of 18,000 each. Robert Bulwell has negotiated hire purchase finance to fund this expansion, and the company has entered into a hire purchase agreement with Granby Garages plc on 1 January 2001. The agreement states that Bulwell Aggregates will pay a deposit of 9,000 on 1 January 2001, and two annual instalments of 24,000 on 31 December 2001, 2002 and a final instalment of 20,391 on 31 December 2003. Interest is to be calculated at 25 per cent on the balance outstanding on 1 January each year and paid on 31 December each year. The depreciation policy of Bulwell Aggregates Ltd is to write off the vehicles over a four-year period using the straight line method and assuming a scrap value of 1,333 for each vehicle at the end of its useful life. The cost of the vehicles to Granby Garages is 14,400 each.

Required: 

(a) Account for the above transactions in the books of Bulwell Aggregates Ltd, showing the entries in the profit and loss account and balance sheet for the years 2001, 2002, 2003 and 2004.

(b) Account for the above transactions in the books of Granby Garages plc, showing the entries in the hire purchase trading account for the years 2001, 2002, 2003. This is the only hire purchase transaction undertaken by this company. Calculations to the nearest .