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Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.?
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Ramesh purchased a motor from Hindustan motors limited on 1st January,...
Introduction:
In this problem, we need to calculate the cost of the motor purchased by Ramesh on a hire purchase system. We have been given the cash price of the motor, the amount of installments to be paid, and the rate of depreciation on the diminishing balance system.
Calculation of Interest:
The first step is to calculate the interest on the hire purchase system. The total amount to be paid by Ramesh is Rs. 60000. He will pay Rs. 20000 in the first year, Rs. 15000 in the second year, Rs. 10000 in the third year, Rs. 10000 in the fourth year and Rs. 5000 in the fifth year. The total amount of interest can be calculated as follows:
Interest = Total amount to be paid - Cash price
Interest = Rs. 60000 - Rs. 31000
Interest = Rs. 29000
Calculation of Depreciation:
The next step is to calculate the depreciation on the motor. The rate of depreciation on the diminishing balance system is 10% per annum. The depreciation for each year can be calculated as follows:
Year 1: Depreciation = 10% of Rs. 31000 = Rs. 3100
Year 2: Depreciation = 10% of (Rs. 31000 - Rs. 3100) = Rs. 2790
Year 3: Depreciation = 10% of (Rs. 31000 - Rs. 3100 - Rs. 2790) = Rs. 2511
Year 4: Depreciation = 10% of (Rs. 31000 - Rs. 3100 - Rs. 2790 - Rs. 2511) = Rs. 2260
Year 5: Depreciation = 10% of (Rs. 31000 - Rs. 3100 - Rs. 2790 - Rs. 2511 - Rs. 2260) = Rs. 2034
Calculation of Principal:
The next step is to calculate the principal amount of the motor. The principal can be calculated as follows:
Principal = Cash price - Total depreciation
Principal = Rs. 31000 - (Rs. 3100 + Rs. 2790 + Rs. 2511 + Rs. 2260 + Rs. 2034)
Principal = Rs. 18205
Calculation of Installments:
Finally, we can calculate the amount of each installment. The installment can be calculated as follows:
Installment = Principal + (Interest / Number of installments)
Installment for year 1 = Rs. 18205 + (Rs. 29000 / 5) = Rs. 7381
Installment for year 2 = Rs. 15000 + (Rs. 29000 / 5) = Rs. 11800
Installment for year 3 = Rs. 10000 + (Rs. 29000 / 5) = Rs. 11800
Installment for year 4 = Rs. 10000 + (Rs. 29000 / 5) = Rs. 11800
Installment for year 5 = Rs. 5000 + (Rs.
In this problem, we need to calculate the cost of the motor purchased by Ramesh on a hire purchase system. We have been given the cash price of the motor, the amount of installments to be paid, and the rate of depreciation on the diminishing balance system.
Calculation of Interest:
The first step is to calculate the interest on the hire purchase system. The total amount to be paid by Ramesh is Rs. 60000. He will pay Rs. 20000 in the first year, Rs. 15000 in the second year, Rs. 10000 in the third year, Rs. 10000 in the fourth year and Rs. 5000 in the fifth year. The total amount of interest can be calculated as follows:
Interest = Total amount to be paid - Cash price
Interest = Rs. 60000 - Rs. 31000
Interest = Rs. 29000
Calculation of Depreciation:
The next step is to calculate the depreciation on the motor. The rate of depreciation on the diminishing balance system is 10% per annum. The depreciation for each year can be calculated as follows:
Year 1: Depreciation = 10% of Rs. 31000 = Rs. 3100
Year 2: Depreciation = 10% of (Rs. 31000 - Rs. 3100) = Rs. 2790
Year 3: Depreciation = 10% of (Rs. 31000 - Rs. 3100 - Rs. 2790) = Rs. 2511
Year 4: Depreciation = 10% of (Rs. 31000 - Rs. 3100 - Rs. 2790 - Rs. 2511) = Rs. 2260
Year 5: Depreciation = 10% of (Rs. 31000 - Rs. 3100 - Rs. 2790 - Rs. 2511 - Rs. 2260) = Rs. 2034
Calculation of Principal:
The next step is to calculate the principal amount of the motor. The principal can be calculated as follows:
Principal = Cash price - Total depreciation
Principal = Rs. 31000 - (Rs. 3100 + Rs. 2790 + Rs. 2511 + Rs. 2260 + Rs. 2034)
Principal = Rs. 18205
Calculation of Installments:
Finally, we can calculate the amount of each installment. The installment can be calculated as follows:
Installment = Principal + (Interest / Number of installments)
Installment for year 1 = Rs. 18205 + (Rs. 29000 / 5) = Rs. 7381
Installment for year 2 = Rs. 15000 + (Rs. 29000 / 5) = Rs. 11800
Installment for year 3 = Rs. 10000 + (Rs. 29000 / 5) = Rs. 11800
Installment for year 4 = Rs. 10000 + (Rs. 29000 / 5) = Rs. 11800
Installment for year 5 = Rs. 5000 + (Rs.
Community Answer
Ramesh purchased a motor from Hindustan motors limited on 1st January,...
H.p=60000
c.p=31000
interest=h.p-c.p
60000-31000
29000
period amount Ratios
1 40000 8
2 25000 5
3 15000. 3
4. 5000. 1
5. 5000 1
c.p=31000
interest=h.p-c.p
60000-31000
29000
period amount Ratios
1 40000 8
2 25000 5
3 15000. 3
4. 5000. 1
5. 5000 1
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Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.?
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Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.?.
Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.?.
Solutions for Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? in English & in Hindi are available as part of our courses for B Com.
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Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.?, a detailed solution for Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? has been provided alongside types of Ramesh purchased a motor from Hindustan motors limited on 1st January,2003 on hire purchase system for a sum of Rs. 60000 payable as to Rs. 20000 at the end of the first year,Rs. 15000 at the end of second year Rs.10000 at the end of third year,Rs. 10000 at the end of fourth year and Rs. 5000 at the end of fifth year. The cash price of the car is Rs. 31000. The rate of depreciation on diminishing balance system is 10%p.a.? theory, EduRev gives you an
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