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 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

Answer:

purchased machinery under hire purchase agreement from the cash price of the machinery was rs15500 the payment was to be made as follows on signinig the agreement 3000 first year end 5000 second year end 5000 third year end 5000 calculate the interest for each year