M/s Raj and Bros. purchased a motor car from Sanjaya Automobiles on 1^st Jan. 2012 on the hire-purchase system. The cash price of the motor car was Rs. 11,170. Rs. 3,000 was to be paid on signing the agreement and the balance in the three annual installments of Rs. 3,000 each. Interest @ 5% p.a. is charged by the vendor. The purchaser had decided to write off 10% depreciation annually on the written down value method. The purchaser could not pay off the installment due on 31st Dec., 2013 and as a result of this, the vendor took possession of the motor-car and the vendor estimated its value Rs. 5,500 and spent Rs. 400 on it. Later on, this motor-car was sold for Rs. 6,400. Prepare necessary accounts in the books of both the parties