On 1st April 2017 X & Y Co. Ltd. acquired 4 machines of ₹50,000 each on hire-purchase system from Z Co. Ltd. The terms included cash down payment of ₹50,000 and payment of the balance in 3 equal annual instalments together with interest at 10% p.a. X & Y Co Ltd. paid the first instalment but failed to pay thereafter. The machines were depreciated at 20% p.a. on diminishing balance method.

Z Co. Ltd. agreed to leave two machines with X & Y Co. Ltd. and adjust the value of the two machines against the outstanding amount after depreciating the machines taken over at 30% p.a. on diminishing balance method. The taken over machines were sold for ₹1,20,000 after incurring renovation expenses of ₹10,000.

Show Ledger Accounts in the books of both the parties assuming that the books are closed on 31st Dec. every year.