'X' purchased 7 trucks on hire purchase on 1.7.1997. The cash purchase price of each truck was
Rs. 50,000. He was to pay 20% of the cash purchase price at the time of delivery and the balance
in 5 half-yearly instalments starting from 31.12.1997 with interest @ 5% per annum. On X?s
failure to pay the instalment due on 30.6.1997, it was agreed that X would return 3 trucks to the
vendor and remaining 4 would be retained by him. The vendor agreed to allow him a credit for the
amount paid against these 3 trucks less 25%. Show the relevant accounts in the books of 'X'
assuming that his books are closed in June every year and depreciation @ 20% is charged on
trucks.(Ans: 1,60,000, Amount credited in respect of three trucks returned-40,500)