Question

tulation of Amount of Annual Instalment when Cash Price is given
SWP. Chaudhary purchased a plant on Hire Purchase System from Bansal & Co. on 1-1-2010.
The cash price of the plant was * 20,000. The price was to be paid as 7 6,384 down and the
balance in 3 equal annual instalments commencing from 31-12-2010 at 5% interest per annum.
*1 can buy an annuity of * 0.367215 at 5% per annum.
Show Journal entries in the books of both buyer and seller assuming that the books are closed on
31st December each year and depreciation is charged at 10% p.a. on reducing instalment method.
001
A6 0201​

Answer 1

Answer:

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