Reference no: EM13938956

Luthuli Electronics Ltd. commenced business on 1 April 1999, selling television sets both on a cash basis and by instalments.  Hire purchase sales require a deposit of one-third of the cash selling price with the balance payable in 18 equal monthly instalments.  No additional charge is made for this service.  At the end of each financial year the firm takes credit for the profit instalment sales only in respect of the proportion represented by deposit and instalments actually reserved.

The following transactions took place during the two yeas ended 31 March 2000 and 2001:

	2000 Shs.	2001 Shs.
Cash sales Instalment sales New TV sets purchased Cash collections or instalment contracts: Initial deposit Monthly instalments         2000 sales                                          2001 sales Stocks at 31 March: New TV sets at cost	9,606,600 84,893,400 69,300,000 Shs. 28,297,800 19,323,900     16,380,000	13,131,000 119,394,000 75,119,700 Shs. 39,798,000 27,623,700 25,182,000   21,604,500

Required:

(i)         Trading accounts in respect of cash sales for each of the years ended 31 March 2000 and 31 March 2001 respectively.                                                                        

(ii)         Show the gross profit on hire purchase sales for each of the years ended 31 March 2000 and 31 March 2001.