Question

a machinery is sold on hire purchase the term of payment is four annual installment of ₹6000 each payable at the end of each year interest is charged @ 20% p.a. and is included in the annual installment of ₹ 6000 show hire vendor's account and machinery account in the books of purchaser who defaulted in the payment of third installment where upon the hire vendor repossessed the machinery the hire purchaser charges depreciation on the machinery at 10% p.a.

Answer 1

Explanation:

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