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Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ?
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Raja purchased an asset under hire purchase system for ` 60,000 paymen...
Assets A/c (in the books of Raja)
- To Hire Purchase A/c
- To Depreciation A/c
- To Loss on Sale of Asset A/c
Hire Purchase A/c (in the books of Raja)
- To Assets A/c
- To Interest A/c
- To Profit & Loss A/c
Cash A/c (in the books of Raja)
- To Assets A/c
- To Hire Purchase A/c
Bank A/c (in the books of Raja)
- To Cash A/c
Assets A/c (in the books of Selling Company)
- To Hire Purchase A/c
- To Repair Expenses A/c
Bank A/c (in the books of Selling Company)
- To Assets A/c
In the above transactions, Raja will record the asset purchase under hire purchase, depreciation, and loss on the sale of the asset. The selling company will record the sale of the asset, repair expenses, and receipt of payment. The payment default by Raja will result in the selling company repossessing the asset and selling it for a reduced amount after repairs. Both parties will adjust their accounts accordingly to reflect the transactions and financial impact.
- To Hire Purchase A/c
- To Depreciation A/c
- To Loss on Sale of Asset A/c
Hire Purchase A/c (in the books of Raja)
- To Assets A/c
- To Interest A/c
- To Profit & Loss A/c
Cash A/c (in the books of Raja)
- To Assets A/c
- To Hire Purchase A/c
Bank A/c (in the books of Raja)
- To Cash A/c
Assets A/c (in the books of Selling Company)
- To Hire Purchase A/c
- To Repair Expenses A/c
Bank A/c (in the books of Selling Company)
- To Assets A/c
In the above transactions, Raja will record the asset purchase under hire purchase, depreciation, and loss on the sale of the asset. The selling company will record the sale of the asset, repair expenses, and receipt of payment. The payment default by Raja will result in the selling company repossessing the asset and selling it for a reduced amount after repairs. Both parties will adjust their accounts accordingly to reflect the transactions and financial impact.
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Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching?
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Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching?.
Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching?.
Solutions for Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? in English & in Hindi are available as part of our courses for Commerce.
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Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching?, a detailed solution for Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? has been provided alongside types of Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? theory, EduRev gives you an
ample number of questions to practice Raja purchased an asset under hire purchase system for ` 60,000 payments tobe made ` 15,000 down and three installments of ` 18,000 each at the end ofeach year. Rate of interest is 10% p.a. Raja depreciates asset @ 10% p.a. ondiminishing balance method.Due to financial difficulties Raja could not pay any installment after firstinstallment and selling company took possession of the asset. The sellingcompany after spending` 1,500 on repairs it sold away the asset for ` 38,000.Prepare necessary ledger accounts in the books of both the parties ? Related: #2 Issue of Shares At Par for Installment & Lump Sum in Easy way with Example by JOLLY Coaching? tests, examples and also practice Commerce tests.
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