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Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.?
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Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hi...
Purchasing Machinery on Hire Purchase Method
Introduction:
In this scenario, Girish Co. Ltd purchased a machine from Shrish Co. Ltd on 1-1-05 using the hire purchase method. Girish Co. Ltd made several payments towards the purchase of the machine over the years, and the installments included interest at the rate of 5% per annum. Additionally, depreciation is charged at a rate of 10% using the straight-line method. We will prepare the Machinery A/C and Shrish Co. Ltd A/C in the books of Girish Co. Ltd.
Calculation of the Cash Price:
The cash price of the machine can be calculated by dividing the total payments made by Girish Co. Ltd by 10% (the amount paid on 1-1-05). Let's calculate the cash price:
On 31-12-05: Rs. 44,500
On 31-12-06: Rs. 32,500
On 31-12-07: Rs. 21,000
Total payments made = Rs. (44,500 + 32,500 + 21,000) = Rs. 98,000
Cash price = Rs. 98,000 / 10% = Rs. 9,80,000
Calculating the Interest:
To calculate the interest, we need to find the total interest paid by Girish Co. Ltd over the years. Let's calculate the interest for each year:
Interest for 2005: 10% of cash price = 10% of Rs. 9,80,000 = Rs. 98,000
Interest for 2006: 5% of (cash price - amount paid in 2005) = 5% of (Rs. 9,80,000 - Rs. 44,500) = Rs. 46,775
Interest for 2007: 5% of (cash price - amount paid in 2005 - amount paid in 2006) = 5% of (Rs. 9,80,000 - Rs. 44,500 - Rs. 32,500) = Rs. 47,475
Total interest paid = Rs. (98,000 + 46,775 + 47,475) = Rs. 1,92,250
Preparing Machinery A/C:
Now, let's prepare the Machinery A/C in the books of Girish Co. Ltd:
Machinery A/C
--------------------------------------------------------
Date Particulars Amount
--------------------------------------------------------
1-1-05 To Shrish Co. Ltd (Cash Price) 9,80,000
31-12-05 By Cash 44,500
31-12-06 By Cash 32,500
31-12-07 By Cash 21,000
--------------------------------------------------------
9,78,000
Closing Balance (Depreciation) 2,000
--------------------------------------------------------
Total 9,80,000
Preparing Shrish Co. Ltd A/C:
Next, let's prepare the Shrish Co. Ltd A/C in the books of Girish Co. Ltd:
Shrish Co. Ltd A/C
--------------------------------------------------------
Date Particulars Amount
--------------------------------------------------------
Introduction:
In this scenario, Girish Co. Ltd purchased a machine from Shrish Co. Ltd on 1-1-05 using the hire purchase method. Girish Co. Ltd made several payments towards the purchase of the machine over the years, and the installments included interest at the rate of 5% per annum. Additionally, depreciation is charged at a rate of 10% using the straight-line method. We will prepare the Machinery A/C and Shrish Co. Ltd A/C in the books of Girish Co. Ltd.
Calculation of the Cash Price:
The cash price of the machine can be calculated by dividing the total payments made by Girish Co. Ltd by 10% (the amount paid on 1-1-05). Let's calculate the cash price:
On 31-12-05: Rs. 44,500
On 31-12-06: Rs. 32,500
On 31-12-07: Rs. 21,000
Total payments made = Rs. (44,500 + 32,500 + 21,000) = Rs. 98,000
Cash price = Rs. 98,000 / 10% = Rs. 9,80,000
Calculating the Interest:
To calculate the interest, we need to find the total interest paid by Girish Co. Ltd over the years. Let's calculate the interest for each year:
Interest for 2005: 10% of cash price = 10% of Rs. 9,80,000 = Rs. 98,000
Interest for 2006: 5% of (cash price - amount paid in 2005) = 5% of (Rs. 9,80,000 - Rs. 44,500) = Rs. 46,775
Interest for 2007: 5% of (cash price - amount paid in 2005 - amount paid in 2006) = 5% of (Rs. 9,80,000 - Rs. 44,500 - Rs. 32,500) = Rs. 47,475
Total interest paid = Rs. (98,000 + 46,775 + 47,475) = Rs. 1,92,250
Preparing Machinery A/C:
Now, let's prepare the Machinery A/C in the books of Girish Co. Ltd:
Machinery A/C
--------------------------------------------------------
Date Particulars Amount
--------------------------------------------------------
1-1-05 To Shrish Co. Ltd (Cash Price) 9,80,000
31-12-05 By Cash 44,500
31-12-06 By Cash 32,500
31-12-07 By Cash 21,000
--------------------------------------------------------
9,78,000
Closing Balance (Depreciation) 2,000
--------------------------------------------------------
Total 9,80,000
Preparing Shrish Co. Ltd A/C:
Next, let's prepare the Shrish Co. Ltd A/C in the books of Girish Co. Ltd:
Shrish Co. Ltd A/C
--------------------------------------------------------
Date Particulars Amount
--------------------------------------------------------
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Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.?
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Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. 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 Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.?.
Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. 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 Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.?.
Solutions for Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.? in English & in Hindi are available as part of our courses for B Com.
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Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.?, a detailed solution for Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.? has been provided alongside types of Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.? theory, EduRev gives you an
ample number of questions to practice Girish co.ltd purchased one machine from shrish co.ltd on 1-1-05 on hire purchase method. Girish co.ltd had paid followings amount towards the purchase of the machine: On1-1-05. 10%of cash price On 31-12-05 rs. 44500 On 31-12-06 rs. 32500 On31-12-07 rs.21000 Installments include interest at the rate of 5%per annum. Depression is to be charged at the rate of 10%as per straight line method. Prepare machinary a/c and shrish co. Ltd. A/c in the books of girish co. Ltd.? tests, examples and also practice B Com tests.
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