Question

ledger accounts in the books of both parties in hire purchase system
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Answer 1

Explanation:

Hire Purchaser Account Dr. To Hire Sales.  

Bank Account Dr. To Hire Purchaser A/c.  

Hire Purchaser Account Dr. To Interest Account.  

Bank Account Dr. To Hire Purchaser A/c.  

Interest Account Dr. To Profit & Loss A/c.  

Hire Sales Account Dr.