Response to the following problem:
On 14th June, 1960, the Easy Terms Company sold an electric washer to Mrs. Ready for the Hire Purchase price of £140. The price was payable by a deposit of £60 and 16 monthly instahnents of £5, the first instalment being paid one month after the sale. The Company prepares its accounts to 31st January each year.
What is the "stock" value of the washer on 31st January, 1961 ?
How much profit from this transaction is included in the accounts for the year to this date? The cost of the washer was £90.