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X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x?
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X purchased a machine on Hire purchased system.The total cash price of...
Ledger Accounts for Hire Purchase System
Cash Price of the Machine: 31960
Down Payment: 8000
Installments: 12000, 10000, 4000
Interest Rate: 5% p.a.
Depreciation Rate: 10% on Straight Line Method
1. Purchase Ledger Account
- Date of Purchase
- Particulars: Machine
- Cash Price: 31960
2. Hire Purchase Vendor's Account
- Date of Payment
- Particulars: Down Payment
- Amount: 8000
- Balance Carried Forward
3. Installments Due Account
- Date of Payment
- Particulars: Installment 1
- Amount: 12000
- Date of Payment
- Particulars: Installment 2
- Amount: 10000
- Date of Payment
- Particulars: Installment 3
- Amount: 4000
4. Interest on Hire Purchase Account
- Date of Payment
- Particulars: Interest Charged
- Amount: (5/100) x (31960 - 8000 - 12000 - 10000 - 4000)
5. Depreciation Account
- Date of Purchase
- Particulars: Machine
- Amount: (10/100) x 31960
- Depreciation Amount for each year: (10/100) x 31960 / 3
Explanation:
1. Purchase Ledger Account: This account is created to record the purchase of the machine on Hire Purchase system. The cash price of the machine is recorded in this account.
2. Hire Purchase Vendor's Account: This account is created to record the down payment made to the vendor. The balance amount is carried forward to the next year.
3. Installments Due Account: This account is created to record the installments due at the end of each year. The installments paid are recorded in this account.
4. Interest on Hire Purchase Account: This account is created to record the interest charged on the outstanding balance of the machine. The interest is calculated at 5% per annum.
5. Depreciation Account: This account is created to record the depreciation charged on the machine. The depreciation is charged at 10% on Straight Line Method. The depreciation amount is calculated for each year and recorded in this account.
Cash Price of the Machine: 31960
Down Payment: 8000
Installments: 12000, 10000, 4000
Interest Rate: 5% p.a.
Depreciation Rate: 10% on Straight Line Method
1. Purchase Ledger Account
- Date of Purchase
- Particulars: Machine
- Cash Price: 31960
2. Hire Purchase Vendor's Account
- Date of Payment
- Particulars: Down Payment
- Amount: 8000
- Balance Carried Forward
3. Installments Due Account
- Date of Payment
- Particulars: Installment 1
- Amount: 12000
- Date of Payment
- Particulars: Installment 2
- Amount: 10000
- Date of Payment
- Particulars: Installment 3
- Amount: 4000
4. Interest on Hire Purchase Account
- Date of Payment
- Particulars: Interest Charged
- Amount: (5/100) x (31960 - 8000 - 12000 - 10000 - 4000)
5. Depreciation Account
- Date of Purchase
- Particulars: Machine
- Amount: (10/100) x 31960
- Depreciation Amount for each year: (10/100) x 31960 / 3
Explanation:
1. Purchase Ledger Account: This account is created to record the purchase of the machine on Hire Purchase system. The cash price of the machine is recorded in this account.
2. Hire Purchase Vendor's Account: This account is created to record the down payment made to the vendor. The balance amount is carried forward to the next year.
3. Installments Due Account: This account is created to record the installments due at the end of each year. The installments paid are recorded in this account.
4. Interest on Hire Purchase Account: This account is created to record the interest charged on the outstanding balance of the machine. The interest is calculated at 5% per annum.
5. Depreciation Account: This account is created to record the depreciation charged on the machine. The depreciation is charged at 10% on Straight Line Method. The depreciation amount is calculated for each year and recorded in this account.
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X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x?
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X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger 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 X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger 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 X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x?.
X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger 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 X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger 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 X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x?.
Solutions for X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x? in English & in Hindi are available as part of our courses for B Com.
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X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x?, a detailed solution for X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x? has been provided alongside types of X purchased a machine on Hire purchased system.The total cash price of the machine is 31960.down payment 8000 and three installments of 12000,10000,4000,payable at the end of the first second third year's respectively. Interest is charged 5%p.a .charge depreciation at 10% on straight line method.prepare ledger accounts in the books of x? theory, EduRev gives you an
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