On 1st April, 2014 a motor van is purchased by X from Auto Distributors on the instalment payment system. The cash price of the van is ₹ 85,000. An amount equal to 30% of the cash price is paid on delivery and two instalments of ₹ 25,000 each are to be paid on 31st March, 2015 and 31st March, 2016. The vendor charges interest @ 10% p.a. The balance is to be paid on 31st March, 2017. Open necessary accounts in the books of both the parties.

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