On 1 January 2011 P Wriggle bought a computer (cash price $£ 1,046$ ) from Dowe Ltd on the following hire purchase terms. Wriggle was to make an immediate payment of $£ 300$ and three annual payments of $£ 300$ on 31 December in each year. The rate of interest chargeable is $10 \%$ per annum on the balance at the start of the year.

P Wriggle depreciates this computer by $40 \%$ reducing balance each year.

(a) Make the entries relating to this computer in Wriggle's ledger for the years 2011, 2012 and 2013. (All calculations are to be made to the nearest $£$.)

(b) Show how the item 'computer' would appear in the statement of financial position as at 31 December 2011.