Mr. Tom purchased a generator on higher purchase from Malipo ltd on January 2012, the higher purchase price was Kenya shillings 22,000 and Tom paid a cash deposit of Kenya shillings 7,000 and the balance payable in four quarterly installments with interest computed using sum of digits method. Cash price of Ksh 15,000.

Required

Prepare the account entries in the books of Mr. Tom.

Answer rating: 100% (QA)

Account name Debit Cred... View the full answer