ONLY A

2. On 01.10.2017, X purchased 5 Machines from Y for 20,00,000. Payment was to be made20% down and the balance in four annual equal instalments of 5,00,000 each to be paid at the end of each year. X, writes off depreciation @ 20% p.a. on the original cost . On X's failure to pay the third instalment, Y e-mailed X that on 01.10.2020 he will repossess 3 machines and will allow a credit for lower of the following: (a) Value of Machines on the basis of 40% p.a. depreciation on WDV basis. (b) the amount paid against 3 machines less 70%. X replied Ok. 01.10.2020 Y repossessed the machines as per mail. Y spent 8,400 on repairs of these machines and sold one of such machines for ' 2,70,000 on 30th June 2021. Both X and Y follow financial year as its accounting year. Required: Prepare Machinery Account and Hire Vendor's Account in the books of X and Hire Purchaser's Account and Goods Repossessed Account in the books of Y. Also Show the Items related to Hire Purchase in the Balance Sheet of X as at 31st March, 2020. [4+4+4+4+2.33=18.33 Marks