Indian Plastics Ltd. purchased one Tempo delivery van under hire-purchase agreement from Hindustan Auto Ltd. On January
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Indian Plastics Ltd. purchased one Tempo delivery van under hire-purchase agreement from Hindustan Auto Ltd. On January 1, 2015, payments were to be made of ₹2,000 on that date and the balance in three equal instalments of ₹4,000 each on January 1, 2016,2017 and 2018. The cash price of the van was ₹12,894. Interest was charged @ 5% p.a. on the yearly balances. The purchaser decided to charge 20% on the written down value as depreciation each year. Show the account in the books of Indian Plastics Ltd. for the four years ending December 31, 2018.
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Related Book For
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
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