Fortune (India) sells goods both on Hire-Purchase System and cash retail system. He has prepared one Trading Account for both the business and has treated total goods supplied to customers on H.P. system as sales which is as under:

Apr 1, 2009

Rs

Mar 31, 2010:

Rs

Stock out on hire at hire purchase price

60,000

Stock out on hire at hire purchase price

69,000

Stock on hand (in the shop)

7,500

Stock on hand (in the shop)

10,500

Installments due (customers still paying)

4,500

Cash received in Installments during the year

1,20,000

Prepare necessary Ledger Accounts under stock and Debtors System

It is informed that cash received from the customers is Rs 79,200 and that the rate of gross profit for H.P. System is 32% on Cost and Cash Sales are made at the H.P. Price as reduced by 1/11.

He now wishes to take credit for such proportion of profit as the installments bear to the total amounts receivable under the H.P. agreements and to adopt stock method of dealing the H.P. transactions. Construct new Trading Accounts for both business separately.