Nene crane ltd acquired equipment on January 1 2006 from quality engineering limited under a two year hire purchase agreement.This required an immediate deposit of 32,000 and a further half yearly installment of 32,000 starting on June 30th, 2006. The cash price was GHS 150,880 the company's financial year ends on 31 December.

Required:

i) Calculate and apportion the Hire Purchase interest over the relevant periods using the sun of the digits method.

ii) Show the quality Engineering Account in the books of Nene Crane Ltd.