Question

on 1st April, 2015A sold a machinery on hire-purchase to B, the cash price being ₹1000. the hire - purchase agrees to pay in two instalments of ₹500each yearly. The interest is 5%per annum. Show B's account in A's book

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Answer 1

 

 

 

 

 

 

 

 

Calculation of Depreciation:

Depreciation p.a.=4,00,000+50,000−50,000(Scrap Value)10 years                              =Rs 40,000 p.a.

Answer:

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