HP Sellers Ltd. sells TV sets under instalment-purchase agreements. The company credits its profit and loss...

Transcribed Image Text:

HP Sellers Ltd. sells TV sets under instalment-purchase agreements. The company credits its profit and loss account each financial year with the profit on deposits and instalments received. This is done by multiplying the gross profit percentage for a particular contract by the deposits and instalments received on that contract. The following transactions took place during the financial year ended 31 December 2007. Name of buyer PORST Cost of TV sets R500 R400 R300 R600 R700 Instalment- purchase price of TV set R 800 R 600 R 500 R 900 R1 000 Deposit paid R200 R150 R120 R250 R300 Instalments paid Guidelines: All answers must be typed out and workings must be showing. R400 R150 R 80 R200 R100 R's TV set was repossessed and sold for R350 cash. Show the instalment credit debtors' account, the instalment credit training account and the second-hand trading account in the books of HP Sellers Ltd. for the year ended 31 December 2007. HP Sellers Ltd. sells TV sets under instalment-purchase agreements. The company credits its profit and loss account each financial year with the profit on deposits and instalments received. This is done by multiplying the gross profit percentage for a particular contract by the deposits and instalments received on that contract. The following transactions took place during the financial year ended 31 December 2007. Name of buyer PORST Cost of TV sets R500 R400 R300 R600 R700 Instalment- purchase price of TV set R 800 R 600 R 500 R 900 R1 000 Deposit paid R200 R150 R120 R250 R300 Instalments paid Guidelines: All answers must be typed out and workings must be showing. R400 R150 R 80 R200 R100 R's TV set was repossessed and sold for R350 cash. Show the instalment credit debtors' account, the instalment credit training account and the second-hand trading account in the books of HP Sellers Ltd. for the year ended 31 December 2007.

Answer rating: 100% (QA)

Note Well answer the first question since the exact one ... View the full answer