A J York was acquiring two cars under hire purchase agreements, details of which are as follows:

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Registration number Date of purchase Cash price Deposit Interest (deemed to accrue evenly over the period of the agreement) JY 1 31 May 19X6 18,000 JY 2 31 October 19X6 24,000 3,120 1,920 4,800 2,400 Both agreements provided for payment to be made in 24 monthly instalments commencing on the last day of the month following purchase. On 1 September 19X7, vehicle JY 1 became a total loss. In full settlement on 20 September 19X7: (a) an insurance company paid 12,500 under a comprehensive policy; and (b) the hire purchase company accepted 6,000 for the termination of the agreement. The firm prepared accounts annually to 31 December and provided depreciation on a straight line basis at a rate of 20 per cent per annum for motor vehicles, apportioned as from the date of purchase and up to the date of disposal. All instalments were paid on due dates. The balance on the hire purchase company account in respect of vehicle JY 1 is to be written off. You are required to record these transactions in the following accounts, carrying down the balances as on 31 December 19X6 and 31 December 19X7: (a) Motor vehicles; (b) Depreciation; (c) Hire purchase company; (d) Assets disposal.