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Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x?
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Purchased a machine on hire purchase system the total cash price of th...
Ledger Accounts for Hire Purchase System
Total Cash Price of Machine: 31,960
Down Payment: 8,000
Installments: 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively
Interest Rate: 5%p.s
Depreciation: 10% on straight-line method
1. Machinery Account
Particulars Amount Particulars Amount
To Bank Account 23,960 By Hire Purchase Price 31,960
To Depreciation -3,196 By Balance c/d 20,764
-------- --------
20,764 20,764
2. Bank Account
Particulars Amount Particulars Amount
To Machinery Account 8,000 By First Installment 12,000
By Second Installment 10,000
By Final Installment 40,000
By Interest 3,730
By Balance c/d 4,230
-------- --------
65,960 65,960
3. Interest Account
Particulars Amount Particulars Amount
To Bank Account 3,730 By Balance c/d 3,730
-------- --------
3,730 3,730
4. Depreciation Account
Particulars Amount Particulars Amount
To Machinery Account 3,196 By Balance c/d 3,196
-------- --------
3,196 3,196
Explanation:
The above ledger accounts show the transactions related to the hire purchase system. The machinery account shows the hire purchase price of the machine, which is 31,960. It also shows the down payment of 8,000 and the depreciation of 3,196 based on the straight-line method. The balance carried down is 20,764.
The bank account shows the payments made through installments. The first installment of 12,000, the second installment of 10,000, and the final installment of 40,000 are shown in the account. The account also shows the interest charged on the hire purchase system, which is 3,730. The balance carried down is 4,230.
The interest account shows the interest charged on the hire purchase system, which is 3,730. The balance carried down is 3,730.
The depreciation account shows the depreciation charged on the machinery, which is 3,196. The balance carried down is 3,196.
Total Cash Price of Machine: 31,960
Down Payment: 8,000
Installments: 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively
Interest Rate: 5%p.s
Depreciation: 10% on straight-line method
1. Machinery Account
Particulars Amount Particulars Amount
To Bank Account 23,960 By Hire Purchase Price 31,960
To Depreciation -3,196 By Balance c/d 20,764
-------- --------
20,764 20,764
2. Bank Account
Particulars Amount Particulars Amount
To Machinery Account 8,000 By First Installment 12,000
By Second Installment 10,000
By Final Installment 40,000
By Interest 3,730
By Balance c/d 4,230
-------- --------
65,960 65,960
3. Interest Account
Particulars Amount Particulars Amount
To Bank Account 3,730 By Balance c/d 3,730
-------- --------
3,730 3,730
4. Depreciation Account
Particulars Amount Particulars Amount
To Machinery Account 3,196 By Balance c/d 3,196
-------- --------
3,196 3,196
Explanation:
The above ledger accounts show the transactions related to the hire purchase system. The machinery account shows the hire purchase price of the machine, which is 31,960. It also shows the down payment of 8,000 and the depreciation of 3,196 based on the straight-line method. The balance carried down is 20,764.
The bank account shows the payments made through installments. The first installment of 12,000, the second installment of 10,000, and the final installment of 40,000 are shown in the account. The account also shows the interest charged on the hire purchase system, which is 3,730. The balance carried down is 4,230.
The interest account shows the interest charged on the hire purchase system, which is 3,730. The balance carried down is 3,730.
The depreciation account shows the depreciation charged on the machinery, which is 3,196. The balance carried down is 3,196.
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Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x?
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Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x? 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 Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x?.
Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x? 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 Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x?.
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Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x?, a detailed solution for Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x? has been provided alongside types of Purchased a machine on hire purchase system the total cash price of the machine is 31,960 down paymen 8,000 and three installments of 12,000, 10,000, 40,000 payable at the end of the first, second and third year respectively.interst is charged 5%p.s charge depreciation at 10% on straight line method.prepare ldger accounts in the books of x? theory, EduRev gives you an
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