ACCOUNTING FOR SOME SPECIAL TRANSACTIONS

HI RE PURC HA SE AND I NSTALM ENT PAYMENT SYSTEM AND ACCOUNTIN G FOR LEASES
Question 1 Krishna Agencies started business on 1s t April, 1994. During the year ended 31 s t March, 1995, they sold under-mentioned durabl es under two sche mes Ca sh P rice Scheme (CPS) and Hi re-Purchase Scheme (HPS). Und er the CPS they p ri ced the goods at cost pl us 25% and collected it on delivery. Und er the HPS the buyers we re requir ed to sign a Hire -pu rchase Agreement undertaking to pay for the value of the goods including finance charges in 30 i nstalments, the value being calculated at Cash Price plus 50 %. The foll owing are the detail s available at the end of 31s t March, 1995 with regard to the products : Product Nos. Nos. sold No s. sold purchased under CPS under HPS Cost per No. of No. of unit i nstalments instal ments Rs. due during received the year during the year

TV sets 90 20 60 16,000 1,080 1,000 Washing 70 20 40 12,000 840 800 Machines

The fol lowing wer e the expenses during the year :

Rs. Rent Salaries 1,20,000 1,44,000

4.2

Accounting

Commission to Salesmen 12,000 Office Expenses

1,20,000

From the above information, you are required to prepare : (a) Hir e-p urchase Trading Account, and (b) Tradi ng and Profit & Loss Account. ( 20 marks) (Inter medi ateMay 1995) Answer In t he books of Krishna Agencies Hire-Purchase Trading Account
for the year ended 31s t March, 1995
Rs. Rs. TVs (60Rs. 30, 000) Washing Machines (40 Rs. 22,500) 9,00,000 To H. P. St ock Reserve 87.5 Rs. 9,90, 000 187.5 To Profit & Loss A/c (H.P. prof it tra nsferre d) 4, 62,000 7, 98,000 By Instalme nt Due A/c: TVs (80Rs.1,000) Washing Machines (40Rs. 750) A/c: (Cancellation of loading) 87.5 Rs. 27,00,00 0 187.5 By H.P. Stock (W.N 2) 39, 60,000 Rs. Rs. TVs 18,00,000 27, 00,000 (1,00 0Rs. 1,000) Washing Machines (8 00 Rs. 750) 10,00,000 6,00, 00 0 16,00,00 0 To Goods sold on H.P. A/c: By Bank A/c cash received

80, 000 30, 000 1,10,000

By Goods sold on HP

12,60,00 0 9,90,000 39,60,00 0

Trading and Profit & Loss Account

for the year ended 31s t March, 1995
Rs. Rs. To Purchases: TVs (90Rs. 16,000) 14,40,000 Rs. Rs. By Sales: TVs (2 0Rs. 20,000) 4,00, 00 0

Accounting for Some Special Transactions 4.3

Washing M achines (70 Rs. 12,0 00) To Gross prof it c/d

8,40,000 22, 80,000

Washing Machines (2 0 Rs. 15,000)

3,00, 00 0 7,00,000 14,40,000 2,80,000 24,20,000

1, 40,000 By Goods sold on H. P. A/c (27,00,00012,6 0, 000) By Shop Stock (W. N 3) 24, 20,000

To Salaries 1, 44,000 By Gross profit b/d 1,40,000 To Re nt 1, 20,000 By H.P. Trading a/c To Com mission (H.P. Profit) 12,000 To Office expe nses To Net Profit 1, 20,000 9, 38,000 5, 42,000

7,98,000

9,38,000

Working Notes: (1) Calcul ation of per unit cash price, H.P. price and Instalmen t A mount : Product Cost Cash P rice H.P. price Instalment Rs. Rs. ( Cost 1.25) TV sets 16,000 20,000 30,000 1,000 Washing Machines 12,000 15,000 (2) Calcul ation of H.P. Stock as on 31s t March, 1995 : Product Total No. of Instal ments Instalments (Nos.) (Nos.) Rs. (Cash Price1.50) Amount (Rs.) (H.P. price/No. of instalments)

22,500

750

Instal ments (Nos.)

Amou nt Rs.

Due in 1994-95 not due in 1994-95

TV sets 1800 1080 720 7,20,000 Washing Machi nes 1,200 840 360 2,70,000 9,90,000 (3) Calcul ation of Shop Stock as on 31s t March, 1995 : Product Purchased Sold Balance (Nos.) (Nos.) (Nos.)

Amount Rs.

4.4

Accounting

TV sets 90 80 10 1,60,000 Washing Machi nes 70 60 10 1,20,000 2,80,000 Question 2 ABC Associates entered into a fi nancial lease agreement on 1.4.1995 with Flexi bl e Leasi ng Ltd. for lease of a car. The price of the car was Rs. 2,00,000 and the quarterly lease rentals wer e agreed at Rs. 90 per thousa nd payable at the b eginning of every quarter. ABC Associates kept up their payments but by 25.3.1996 they approached and obtained the consent of the leasing company for treating the arrang ement as one of Hire -purchase from the beginning on the following terms : Period: 3 years Quarterly hire : Rs. 30,000 payable at the begi nning of the quarter. It was agreed that the lease rentals paid will be treated as hir e moni es and that the balance due up to 31.3.1996 will be settl ed by ABC A ssociates on that date wi th interest at 18% p.a. on various i nstalments due during the year. The r ate of depreci ation on the car is 25%. Show the followi ng accounts in the books of ABC Associates for the year 1995 -96: Flexible Leasi ng Ltd.s A/c and Interest Suspense A/c. Calculatio ns are to be rounded off to the nearest r upee

(15 Mar ks)(IntermediateMay 1996) Answer Books of ABC Associates Flexible Leasing Limit ed Account Dr. Rs. 1996 1996 Mar ch 25 To Lease rental A/c Mar ch 31 To Bank 53,400 March 25 By Car on Hire Purchase A/c March 25 By Inter est Suspense A/c Mar ch 31 To Balance c/d 2,40,000 By Intere st A/c 5,400 3,65,400 3,65,400 Interest Suspense Account Dr. Rs. 1996 1996 Mar ch 25 To Fl exible 1,60,000 March, 31 By Intere st on Hi re 72,727 Cr. Rs. 72,000 Cr. Rs. 2,00,000 1,60,000

Accounting for Some Special Transactions 4.5 Leasi ng Ltd. A/c 1,60,000 1,60,000 p urchase A/c March, 31 By Balance c/d 87,273

Working Notes :
(1) Calculation of bal ance payable on 31s t March, 199 6 and the Amount of Interest

Calculati on of Difference Payable on 31.3.1996 and Interest

Dat e Quarterly Hire Charges (Rs.) Qu arterly Lease Rent als Paid (Rs.) Difference Payable (Rs.) I nterest From (18% p.a.) To Am ount of Int erest (Rs.)

1. 4.95 30, 000 18,000 12 ,000 1.4.95 31 .3.96 2, 160 1. 7.95 30, 000 18,000 12 ,000 1.7.95 31 .3.96 1, 620 1. 10.95 30, 000 18,000 12 ,000 1.10.95 31 .3.96 1, 080 1. 1.96 30, 000 18,000 12 ,000 1.1.96 31 .3.96 5 40 72,000 48 ,000 5, 400

Amount payable on 31s t March, 19 96 :

Rs. Balance due Interest due 48,00 0 5,400 53,40 0 (2) Ascertainment of Total Amount of Interest on Hire Purchase Rs. Hire Purchase Price of the car (Rs. 30,000 12 installments) 3,60,00 0 Less : Cash Price Total Amount of Inter est 1,60,00 0 (3) Calculation of Inter est on Hi re Purchase Attributable to the year 1995-1996. Date 1.4.95 Interest Cal culation Inter est Rs.

2,00,00 0

4.6

Accounting

1.7.95 1.10.95 1.1.96

,000 1,6026,667

160,000 , 24,242

66 11

160,000 , 21,818 66

66 10 9
72,727

Question 3 Omega Corpora tion sells comp uters on hire purchase basis at cost plus 25%. Terms of sales are Rs. 10,000 as down payment and 8 monthly instalments of Rs. 5,000 for each computer. From the following particulars prepare Hir e Purchase Trading Account for the year 1999. As on 1s t January, 1999 last i nstal ment on 30 computers was outstanding as these were not due up to the end of the previous year. Duri ng 1999 the fir m sol d 240 computers. As on 31s t December, 1999 the positi on of instalments outstanding were as un der : Instalments due but not collected : 2 instalments on 2 computers and last i nstal ment on 6 computers. Instalments not yet due : 8 instalments on 50 computers, 6 instal ments on 30 and last i nstal ment on 20 computers. Two computers on which 6 instalments wer e due and one instalment not yet due on 31.12.99 had to be repossessed. Repo ssessed stock is valued at 50% of cost. All other instalments have been received. ( 10 marks) (Inter medi ateMay 2000) Answer In the books of Omega Corporation Hire Purchase Trading Account
f or the year ended on 31s t Dec., 1999
Dr. Rs. Rs. 91,40,000 By Stock Rese rve (Rs. 1,50,000 20%) 1,20,00,0 00 By Goods so ld o n Hire Purchase To Loss on Re(Rs. 1,20,00, 000 20%) 24,00,000 30,000 To Hire Purchase Stock By Hire Purchase (30Rs. 5,000) 1,50,000 Sales (W.N. 2) To Goods So ld on Hire Purchase (240Rs. 50, 000) To Bad Debt s 12,000 Cr Rs.

Accounting for Some Special Transactions 4.7

po ssession 16,000 By Hire Purchase Stock Less : I nstalments no t yet due To Stock Rese rve 8,000 8,000 6,00,000 [(850+630+12 0) Rs. 5, 000] 30,00,000

(30,00 ,000 2 0%)

To Profit & Loss A/c (Transfer of Profit)

18,00,000 1,45,70,0 00 1,45,70,00 0

Alternativel y, hire purcha se trading account can be prepared i n the following manner : Hire Purchase Trading Account
f or the year ended on 31s t Dec., 1999
Rs. Rs. To Hire Purchase Stock By Cash (W. N.1) 90,30,000 (30Rs. 5,0 00) 1,50,000 By Stock Reserve To Goods So ld on Hire (Rs. 1,50,00020%) Purchase By Goods Sold on Hire (240Rs. 50, 000) Purchase 1,20,00,0 00 To Stock Rese rve (Rs. 30,00, 000 20%) To Profit & Loss A/c (Transfer of Profit) (Rs. 1,20,00,00020%) 6,00,000 By Goods Repossessed (2Rs. 40,00050%) 18,00,000 By Instalments Due [(22+16)Rs. 5, 000] By Hire P urchase St ock [850+630+120)Rs. 5, 000] 1,45,50,0 00 30,00,000 1,45,50,00 0

30,000

24,00,000

40,000 50,000

Working Notes : Rs. (1) Cash collected: Cash down payment (240 Rs. 10,000) Add : Instal ments coll ected : Last i nstal ments on 30 computers outstandi ng on 1.4.99 1,50,000 Instal ments due and collected on 240 computers sold during the year : 24,00,000

4.8

Accounting

Total i nstal ments on 240 computers (8 240 Rs. 5,000)

96 ,00,000

Less : Instalments due but not collected [(2 2 + 1 6 + 6 2) Rs. 5,000] 1,10,000

(2) Hire purchase sales: Cash collected

Instal ments not due on 31.12.99

90,30,000 90,30,000

Add : Instal ments due but not coll ected [(8 50 + 6 30 + 1 20 + [(2 2 + 1 6 + 6 2) Rs. 5,000] 1,10,000 1 2) Rs. 5,000] 30,10,000 31,20,000 64,80,000
48,000 8,000 56,000 91,40,000

(3) Loss on repossessed computers:

Cost of i nstal ments due but not coll ected (6 2 Rs. 4,000) Cost of Instalments not yet due (1 2 Rs. 4,000)

Less : Estimated val ue of repossessed computers (2 Rs. 40,000 50%) Loss (4) Bad debts (in respect of repossessed computers): Instalments due but not collected (6 2 Rs. 5,000) Cost of i nstallments not due on 31.12.99 (1 2 Rs. 5,000 80%) 60,000 8,000 68,000 Less : Cost of instalments due but not collected (6 2 Rs. 4,000) Cost of instalments not yet due (1 2 Rs. 4,000) 48,000 8,000 56,000 40,000 16,000

Accounting for Some Special Transactions 4.9 12,000 Bad debts Question 4
Wel wash (Pvt.) Ltd. sells washi ng machines for outright cash as well as on hire-purchase basi s. The cost o f a washing machine to the company is Rs. 10,50 0. The company has fixed cash price of the machine at Rs. 12,300 and hire-purchase pri ce, at Rs. 13,500 payable as to Rs. 1,500 down and the balance in 2 4 equal monthl y instalments of Rs. 500 each. On Ist April, 2000 the company had 26 washing machines lying in i ts showroom. On that date 3 instalments had fal len due, but not yet received and 675 instalments were yet ot fal l due in respe ct of machi nes lying with the hire purchase customers. Duri ng the year ended 31s t March, 2001 the company sold 130 machines on cash basis and 80 machines on hire-purchase basis. After paying fi ve mo nthly instalments, one customer failed to pay subsequent instal ments and the comp any had to repossess the washi ng machine. After spending Rs. 1,000 on it, the co mp any resold it for Rs. 11,500. On 31s t March, 2001 there were 21 wa shing machine s in stock, 810 i nstalments were yet to fall due and 5 instalments had fallen due, but not yet received i n respect of washing machi nes lying with the hir e- pur chase custo mer s. Total selling expenses and offi ce expenses incl udi ng depreciation on fixed assets totalled Rs. 1,60,000 for the year . You are requi red to prepare for th e Accounting Year ended 31 st March, 2001:

(i) Hire pur chase Trading Account, and (ii) Trading and Profit and Loss Account showing net profit earned by the company after making provision for income -tax @ 35%. (16 marks)(IntermediateNov. 2001) Answer In the books of Welwash (P vt.) Ltd. Hire Purchase Trading Account
for the year ended on 31 s t March, 2001
Dr. Rs. To Hire Purchase Stock (Rs. 500 67 5) To Instalments due Rs. (500 3) By Cash (W. N. 1) 3,37,500 By Stock Reserve 1,500 Rs . 3, 37 , 500 3 ,000 13 , 75,000 10,02,000 Cr Rs.

500 To Goods sold on Hire Purchase By Go ods Re possessed (Rs. 13,50080) 10,80,000 (Rs. 13,500Rs. 1,500Rs. 2,500) 9,500 To Stock Rese rve By Goods sold on Hire Purchase 3,000 3,000 90,000 Rs.4,05,000 Rs.10,80,000 2,40,0 00 13 , 13 , 500 500

4.10

Accounting

To Profit and Loss A/c (Tra nsfer of profit)

By Hire P urchase St ock 2,25,000 (Rs. 500 810) By Instalments due (Rs. 500 5) 17,34,000 4,05,000 2,500 17,34,000

Trading and Profit and Loss Account

for the year ended on 31 s t March, 2001
Rs. To Opening Stock (Rs.10,50026) To Purchases By Goods so ld o n Hire Purchase 21,52,500 (Rs. 10,80, 000Rs. 2,40,000) 2,20,500 26,59,500 2,34,000 2,25,000 8,40,000 2,73,000 By Sales (Rs. 12 ,300130) 15,99,000 Rs.

Rs. 10,500(130+80+2126) To Gross Profit 2,34,000

By Closing Stock (Rs. 10,50021) 26,59,500

To Sundry Expenses

1,6 0, 000

By Gross Profit

To Provisio n for In come Tax (35% of Rs. 3,00,000) To Net Profit for the year 1,000

By Hire Purchase Trading A/c 1,05, 000 By Goods Repossessed

1,95, 000 4,60, 000

(Rs. 11, 500Rs.1,000Rs. 9,500 ) 4,60,000

Working Notes : Rs. (1) Cash col lecte d duri ng the year Hire purchase stock on 1.4.2000 Instalments due on 1.4.2000 3,37,500 1,500

Less : Repossessed goods 9,500

Hire purchase pri ce of goods sold duri ng the year 10,80,000

14,19,000 Rs. Hire pur chase stock on 31.3.2001 4,05,000 Instalments due on 31.3.2001 2,500 4,17,000 10,02,000

Cash col lected duri ng the year

Accounting for Some Special Transactions 4.11 (2) Washin g machin es purchased during the year No. No. Closing balance Add : Cash Sales 21 130

Sales on hire Less : Opening stock 231

Question 5

purchase basis 80

26 205

Purchase during the year Purchases

205 Rs. 10,500 = Rs. 21,52,500

A acquired on 1st January, 2003 a machine under a Hire-Purcha se agreement which provides for 5 half-yearly instalments of Rs. 6,000 each, the fir st i nstalment being due on 1st July, 2003. Assuming that th e appli cable rate of interest is 10 per cent per annum, calculate the cash value of the machine . All working shoul d form part of the answer. (8 ma rks) (PE-II May 2003) Answer Statement showing cash value of the machine acquired on hire-purchase basis

Instal ment @ 5% half Interest yearly (10% p.a.) = Amount 5/105 = 1/21)
(in each instalment) Rs. Rs. Rs. 5th Instalment 6,000 286 5,714

Principal Amount (in each i nstalment)

Less: Interest 286

Add: 4th Instalment 6,000 Less: Interest 5,714) Add: 3rd 6,000 Less: Interest 11,156) 558
11,714 558 5,442 11,156

5,714

( 11,156

instalment 817
17,156 817 5,183 16,339

(16,339

4.12

Accounting

Add: 2nd i nstalment 6,000 22,339 1,063 4,937 Less: Interest 1,063 (21,276 16,339) 21,276 Add: 1st instalment 6,000 Less: Interest 21,276)
Question 6 Sameera Corpor ation sell s Computer s on Hi re- purchase basis at cost plus 25%. Terms of sales are 5,000/- as Down payment and 10 monthly i nstal ments of Rs. 2,500/- for each Computer. From the fol lowing particulars, prepare Hire-purchase Tr ading A/c for the year 2002-2003: As on 1st April, 2002, last instalment on 20 Computers were outstandi ng a s these were not due upto the end of the previous year. Duri ng 2002 03, the fir m sol d 120 Computers. As on 31st Mar ch, 2003 the position of instalments outstanding were as under: Instalments due but not collected 4 Instalments on 4 Computers and Last instalment on 9 Computers Instalments not yet due 6 Instal ments on 50 Computers, 4 Instal ments on 20 and Last Instalment on 40 Computers Two Computers on which 8 Instalments were due and one Instalment not yet du e on 31.03.2003, had to be repossessed. Repossessed stock is valued at 50% of cost. All other Instalments have been received. (14 marks) (PE-II May 2004) Answer In the books of Sameera Corporation Hire Purchase Trading Account for the year ended 31st March, 2003
Amount 50,000 By Hire Purchase Sales (W.N. 2) 36,00,000 By Stock Reserve (Rs. 50,000 Rs. 25,95,000 10,000 20%)

1,299

27,276 1,299 4,701 25,977 4,023

(25,977
25,977

The cash purchase price of machinery i s Rs. 25,977.

Dr.
Amount Rs. To Hire Purchase St ock (20 Rs. 2,500) To Goods sold on Hire Purchase

Cr.

Accounting for Some Special Transactions 4.13

(120 Rs.30,000) To Bad Debts 8,000 By Goods sold on Hire Purchase (W.N. 4) To Loss on Repossession 12,000 (Rs. 36,00,000 20%) Less: Instalments not By Hire Purchase St ock yet due 4,000 8,000 [(6 50+4 20+ 1 40) Rs. 2,500] To Stock Reserve (Rs.10, 50,000 20%) To Profit and Loss Account (Transfer of Profit) 2,10,000 4,99,000 43,75,000

7,20,000 10,50,000

________ 43,75,000

Alternati vely the Hire Purchase Trading A/c can be prepared in the following manner: Hire Purchase Trading Account for the year ended 31st March, 2003 Amount Rs. 50,000 By Cash Account (W.N. 1) 36,00,000 By Stock Reserve (Rs. 50,000 20%) 2,10,000 By Goods sold on Hire Purchase (Rs. 36,00,000 20%) 4,99,000 By Goods Repossessed
(2 [(4 4 + 1 9)

To Hire Purchase Stock (20 Rs. 2,500) To Goods sold on Hire

Purchase (120 Rs.30,000)

Amount Rs. 24,92,500 10,000 7,20,000

To Stock Reserve (Rs.10,50,000 20%) To Profit and Loss Account (Transfer of Profit)

Rs. 24,000 50%) Rs. 2,500]

20 + 1

24,000

By Instalments due 62,500 By Hire Purchase Stock

[(6 50 + 4

10,50,000 43,59,000

________ 43,59,000 Question 7

Rs. 2, 500]

40)

ABC Ltd. sells goods on Hire-purchase by adding 50% above cost. From the followi ng particulars, prepare Hi re-purchase Tradi ng account to reve al the profit for the year ended 31.3.2005: Rs. 1.4.2004 1.4.2004 1.4.2004 Instalments due but not collected 10,000 Stock at shop (at cost) Instalment not yet due 36,000 18,000

4.14

Accounting

31.3.2005 31.3.2005 Other details: Total instalments became due Goods purchased

Stock at shop Instalments due but not collected 18,000

40,000

1,32,000 1,20,000

Cash received from customers 1,21,000 Goods on which due instalments could not be collected were repossessed and valued at 30% below origi nal cost. The vendor spent Rs. 500 o n getting goods overhaul ed and then sol d for Rs. 2,800. (16 marks) (PE-II May 20 05) Answer In the Books of ABC Ltd. Hire Purchase Trading Account for the year ended 31st March, 2005 Dr. Rs. 1.1.2004 To Hire purchase stock 1.1.2004 To Goods sol d on hire to Purchase 31.3.2005 To Loss on repossession of goods (W.N. 5) 18,000 1.1.2004 By Stock reserve (1/3 of Rs. 18,000) 6,000 1,74,000 1.1.2004 to 31.3.2005 1,600 Cr. Rs.

31.3.2005 To Stock reserve 20,000 To Profit and loss account (Transfer of profit) 43,300 31.3.2005 By Hire purchase

Goods sold on hire purchase (1/3 of Rs. 1,74,000) By Profit on sale of repossessed goods (W.N. 4)

ByHire purchase Bysales

1,32,000 58,000

900

stock (W.N. 3) 60,000 2,56,900 2,56,900 Al ternatively, Hire Purchase Trading Account can be prepa red in the following mann er: Hire Purchase Trading Account for the year ended 31st March, 2005

Dr.

Cr. Rs. Rs. 1.1.2004 To Hire purchase stock 18,000 1.1.2004 By Stock reserve (1/3 of Rs. 6,000 1.1.2004 To Hire purchase debtors 10,000 18,000) To Goods sold on hire 1,74,000 1.1.2004 By Cash (Rs. 1,21,000 + Rs. to 1,23,800 31.3.2005 purchase to 2,800) 500 31.3.2005 By Goods sold on hire Cash (Overhauling To 58,000 charges) purchase 31.3.2005 To Stock reserve 20,000 (1/3 of Rs. 1,74,000)

Accounting for Some Special Transactions 4.15

To Profit and loss account (Transfer of profit) 43,300 2,65,800 31.3.2005 By Hire purchase stock By Hire purchase debtors _______ 2,65,800 60,000 18,000

4.16

Accounting

Accounting for Some Special Transactions 4.17

5. Working Notes: Rs. 1. Memorandum Instalment due but not collected (hire purchase debtors) account 100 Origi nal cost of goods repossessed Rs. 3,000 2,000 Dr. Cr. Rs. Rs. Instalments due but not received Cash 150 3,000 To Balance b/d 10,000 By 1,21,000 Val uation of purchase To Hire repossessed goods ( 70% of Rs. 2,000) 1,400 stock By Repossessed Loss on repossession 1,600 1,32,000 sales (Balancing figure) 3,000 2. _______ By Balance c/d 18,000 1,42,000 Memorandum shop stock acc ount Dr. Cr. Rs. To Bal ance b/d 36,000 By Goods sold on hire purchase 1,16,000 To Pur chases 1,20,000 (Balancing figure) _______ By Balance c/d 1,56,000 3. 40,000 1,56,000 1,42,000

Rs.

Memorandum Instalment not yet due ( hire purchase stock) acc ount Dr. Cr. Rs. Rs. To Balance b/d 18,000 By Hire purchase Sales 1,32,000 To Goods sold on hire By Balance c/d (Balancing purchase [1,16,000 + figure) ( 1,16,000 50%)] 1,74,000 1,92,000

60,000 _______ 1,92,000

4.

Goods Repossessed account Dr. Rs. To Hire purchase debtors 3,000 By Hire purchase trading account (W.N. 5) _____ By Balance c/d (W.N. 5) 1,400 3,000 To Balance b/d 1,400 By Cash account 2,800 500 To Cash account ( expenses) To Profit on sale 900 2,800 Cr. Rs. 1,600 3,000

_____ 2,800