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 to be 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 31'' 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

Answer:

✅The amount of total interest

= Rs 2,500,

✅ balance of Machinery

A/c on 1.1.19 = Rs. 15,000.

Explanation:

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