Question

Bombay Okara Corporation Ltd. Purchased on 1st January 2015 from Delhi Motors five
trucks costing Rs. 50,000 each on the hire purchase system. The payment was to be made as:
10% of cash price down and 25% of cash price at the end of four subsequent half years. The
payment due on 31
st December 2015 could not be made and hence the trucks were by the
vendor.
But after negotiation, the hire purchaser was allowed to keep three trucks on the condition
that the value of the other two trucks would be adjusted against the amount due, the truck
being valued at cost less 25% depreciation. Bombay Corporation closed its books on 30 June
every year and the depreciation is charged at 15 % p.a. on the original cost. The vendor
spent Rs. 10,000 on getting the trucks thoroughly overhauled and sold them for Rs. 90,000.
Show the various accounts in the books of both parties.

Answer 1

Answer:

Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. (✿)(✿)(✿)

Organizations in this sector: Institute of Chartered Accountants in England and Wales