Question

Ans. Int. I year 21,600; II yr.14,400. (1) Loss on scooters 22,500; (ii) Balance of one
BLtd. purchased two Trucks costing + 80,000 each from A Ltd. on 1st April
, 2013 on the Hire Purchase System.
The terms were : Payment on delivery 20,000, for each Truck. Remainder in 3 equal instalments together
with interest at 10% per annum to be paid at the end of each year, B Ltd. writes off 25% depreciation each year
on the diminishing balance method. B Ltd. paid the instalments due on 31st March, 2014 and on 31st March,
2015 but could not pay the final instalment. A Ltd.-repossessed one Truck adjusting its value against the
amount due. The repossession was done on the basis of 30% depreciation on the Diminishing Balance Method.
Write up the necessary accounts in the books of B Ltd.
Ans. Transfer from Truck Account 6,310 to Statement of P. & L. on 31st March, 2015. Balance c/d 33,750.
Int. I yr.7 -12,000; II R8,000; HII yr.4,000.​

Answer 1

Answer:

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