Question

Mr. Gupta purchased machinery under hire-purchase arrangement from Mr. Pankaj. The cash
price of the machinery was * 15,500. The payment for the purchase is to be made as under:
On signing the agreement * 3,000 ; First year end 5,000 ; Second year end 5,000 ;
Third year end 5,000.
Make necessary ledger accounts in the books of both the parties charging depreciation @
10% on diminishing balance method.​

Answer 1

Explanation:

answer is given in the picture