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The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.?
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The Madras Transport Company purchases a motor car from Bombay Motor L...
Ledger Accounts in the Books of Bombay Motors Ltd.
1. Hire-Purchase Account
2. Motor Car Account
3. Interest Account
1. Hire-Purchase Account
Date Particulars Amount (Rs.) Date Particulars Amount (Rs.)
Jan 1, 2012 To motor car account 37,250 Dec 31, 2012 By instalment received 10,000
To cash account 10,000 By interest received 1,862.50
To interest account 1,862.50 Dec 31, 2013 By instalment received 10,000
To bank account 27,387.50 By interest received 1,369.38
Dec 31, 2014 By instalment received 10,000
By interest received 611.72
To motor car account 37,250
To interest account 1,981.91
To bank account 8,768.09
2. Motor Car Account
Date Particulars Amount (Rs.) Date Particulars Amount (Rs.)
Jan 1, 2012 To bank account 37,250 Dec 31, 2012 By hire-purchase account 10,000
By depreciation 3,725
By balance c/d 23,525
37,250 37,250
Dec 31, 2013 By hire-purchase account 10,000 Dec 31, 2013 By depreciation 2,352.50
By balance c/d 11,147.50 By balance b/d 23,525
21,500 21,500
Dec 31, 2014 By hire-purchase account 10,000 Dec 31, 2014 By depreciation 1,114.75
By balance c/d 2,632.75 By balance b/d 11,147.50
12,500 12,500
3. Interest Account
Date Particulars Amount (Rs.) Date Particulars Amount (Rs.)
Jan 1, 2012 To hire-purchase account 1,862.50 Dec 31, 2012 By hire-purchase account 1,862.50
Dec 31, 2012 To hire-purchase account 1,862.50 Dec 31, 2013 By hire-purchase account 1,369.38
Dec 31, 2013 To hire-purchase account 1,369.38 Dec 31, 2014 By hire-purchase account 611.72
Dec 31, 2014 To hire-purchase account 611.72
Explanation:
1. Hire-Purchase Account:
- This account is used to record the hire-purchase transactions between the Madras Transport Company and Bombay Motors Ltd.
- On Jan 1, 2012, the motor car account is debited with Rs. 37,250, the cash account is debited with Rs. 10,000, and the interest account is debited with Rs. 1
1. Hire-Purchase Account
2. Motor Car Account
3. Interest Account
1. Hire-Purchase Account
Date Particulars Amount (Rs.) Date Particulars Amount (Rs.)
Jan 1, 2012 To motor car account 37,250 Dec 31, 2012 By instalment received 10,000
To cash account 10,000 By interest received 1,862.50
To interest account 1,862.50 Dec 31, 2013 By instalment received 10,000
To bank account 27,387.50 By interest received 1,369.38
Dec 31, 2014 By instalment received 10,000
By interest received 611.72
To motor car account 37,250
To interest account 1,981.91
To bank account 8,768.09
2. Motor Car Account
Date Particulars Amount (Rs.) Date Particulars Amount (Rs.)
Jan 1, 2012 To bank account 37,250 Dec 31, 2012 By hire-purchase account 10,000
By depreciation 3,725
By balance c/d 23,525
37,250 37,250
Dec 31, 2013 By hire-purchase account 10,000 Dec 31, 2013 By depreciation 2,352.50
By balance c/d 11,147.50 By balance b/d 23,525
21,500 21,500
Dec 31, 2014 By hire-purchase account 10,000 Dec 31, 2014 By depreciation 1,114.75
By balance c/d 2,632.75 By balance b/d 11,147.50
12,500 12,500
3. Interest Account
Date Particulars Amount (Rs.) Date Particulars Amount (Rs.)
Jan 1, 2012 To hire-purchase account 1,862.50 Dec 31, 2012 By hire-purchase account 1,862.50
Dec 31, 2012 To hire-purchase account 1,862.50 Dec 31, 2013 By hire-purchase account 1,369.38
Dec 31, 2013 To hire-purchase account 1,369.38 Dec 31, 2014 By hire-purchase account 611.72
Dec 31, 2014 To hire-purchase account 611.72
Explanation:
1. Hire-Purchase Account:
- This account is used to record the hire-purchase transactions between the Madras Transport Company and Bombay Motors Ltd.
- On Jan 1, 2012, the motor car account is debited with Rs. 37,250, the cash account is debited with Rs. 10,000, and the interest account is debited with Rs. 1
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The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.?
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The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.? 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 The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.?.
The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.? 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 The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.?.
Solutions for The Madras Transport Company purchases a motor car from Bombay Motor Ltd. on a hire-purchase agreement on January 1, 2012 paying cash Rs.10,000, and agreeing to pay three further instalments of Rs. 10,000 each on December 31 each year. The cash price of the car is Rs. 37,250 and Bombay Motor Ltd. charges interest at 5% p.a. The Madras Transport Company writes off 10% p.a. as depreciation on the Reducing Balance Method. Prepare necessary Ledger Accounts in the books of Bombay Motors Ltd.? in English & in Hindi are available as part of our courses for B Com.
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