Question

Accured Interest Account
On 1 June, 2014 Nikhil purchased a machine whose cash price is = 90,000 on Hire Purchase Systems. Its
payment is to be made in 4 half-yearly instalments of 25,000 each. Rate of interest is 8% per annum. Machine
was destroyed by an accident on 1st June, 2016, and Nikhil received * 70,000 from Insurance Company.
Depreciation is 10% per annum. It is calculated on fixed instalment method. Nikhil closes its books every year
31st March. Open Accrued Interest Account Machinery Account and Interest Account in the books of Nikhil.​

Answer 1

Answer:

Systems. Its

payment is to be made in 4 half-yearly instalments of 25,000 each. Rate of interest is 8% per annum. Machine

was destroyed by an accident on 1st June, 2016, and Nikhil received * 70,000 from Insurance Company.

Depreciation is 10% per annum. It is calculated on fixed instalment method. Nikhil closes its books every year

31st March. Open Accrued Interest Account Machinery Account and Interest Account in the books of Nikhil.

Answer 2

.above one is correct answer

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