Question

Dinesh Ltd. on 1st April 2015, purchased a machine from Rajesh Ltd. on hire purchase basis. The cash price of the machine was Rs. 25,000. The payment was tobe made Rs. 5,000 on the date of the contract and the balance in four annual instalments of Rs.5,000 each plus interest at 5% per annum payable on December 31st each year, and the first such instalment being payable on 31.12.2015. Depreciation is to be charged @ 10% on original cost. Make necessary ledger accounts in the books of Hire Purchaser.

Answer 1

payable on December 31st each year, and the first such instalment being payable on 31.12.2015. Depreciation is to be charged @ 10% on original cost. Make necessary ledger accounts in the books of Hire Purchaser

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