Question

On 1st april, 2008 a motor van is purchased by x from auto distributors on the installment payment system. the cash price of the van is rs 85000. an amount equal to 30% of the cash price is paid on delivery and two installments of rs 25000 each are to be paid on 31st march, 2009 and 31st march, 2010. the vendor charges interest @10% p.a. the balance is to be paid on 31st march, 2011. open necessary accounts in the books of both parties.

Answer 1

question

On 1st april, 2008 a motor van is purchased by x from auto distributors on the installment payment system. the cash price of the van is rs 85000. an amount equal to 30% of the cash price is paid on delivery and two installments of rs 25000 each are to be paid on 31st march, 2009 and 31st march, 2010. the vendor charges interest @10% p.a. the balance is to be paid on 31st march, 2011. open necessary accounts in the books of both

answer

problem

but plese mark me as a brainest Purchase, Instalments and Lease: Problem and Solution # 1.

On 1st April, 2008, Bihar Collieries obtained a machine on the hire purchase system, the total amount payable being Rs 2,50,000. Payment was to be made Rs 50,000 down and the balance in four annual instalments of Rs 50,000 each. Interest charged was at the rate of 15 per cent. At what value should the machine be capitalised?

solution

If amount due in the beginning of a year is Rs 100, interest for the year will be Rs 15 and the amount of instalment due at the end of the year will be Rs 115. Thus, interest is 15/115 or 3/23 of the amount due at the end of each year.

Answer 2

Explanation:

calculation of interest cash price =85000-25000=59,500-19050+=40450