ILLUSTRATION 25 Mr. Glostar commenced business on 1st April, 2014. He sells washing machines of a standard type and size on hire purchase terms. The total amount, including interest payable for each washing machine is $4,500. Customers are required to pay an initial deposit of $900, followed by eight quarterly instalments of $450 each. Following trial balance is extracted from Mr. Glostar's books as on 31-3- 2015 TRIAL BALANCE Particulars Debit Credit $ $ Capital 15,00,000 Furniture 1,50,000 Purchases 27,00,000 Cash Collected from Customers 11,47,500 Salaries and Wages 1,92,000 Office Expenses 82,500 Creditors 2,49,000 Bank Overdraft 2,94,000 Bank Interest 6,000 Drawings 60,000 31,90,500 31,90,500 850 machines were sold during the year on hire purchase terms. Mr. Glostar has decided to take credit profits and interest in proportion to cash collections. He purchases at a cost of $3,000 each. Provide 8% depreciation on furniture. You are required to prepare the Hire Purchase Trading A/C, Profit & Loss A/c and Balance Sheet as on that date. All workings are to be shown