X purchased a car from Y costing 1,50,000 on hire purchase system. Payment was to be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
X purchased a car from Y costing 1,50,000 on hire purchase system. Payment was to be made 30,000 down and remainder in 3 equal annual instalments together with interest at 5% p.a. X provides depreciation at 20% p.a. on diminishing balance basis. X paid the first instalment at the end of first year but could not pay the next. Y took possession of the car. He spends 5,800 on the car and sold it for 80,000. Show necessary ledger accounts in the books of both the parties. X purchased a car from Y costing 1,50,000 on hire purchase system. Payment was to be made 30,000 down and remainder in 3 equal annual instalments together with interest at 5% p.a. X provides depreciation at 20% p.a. on diminishing balance basis. X paid the first instalment at the end of first year but could not pay the next. Y took possession of the car. He spends 5,800 on the car and sold it for 80,000. Show necessary ledger accounts in the books of both the parties.
Expert Answer:
Answer rating: 100% (QA)
We Create the ledger accounts for both parties X and Y 1 Ledger Accounts for X a Car Account Date Pa... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Msafiri Limited purchased 3 trucks from Kopesha Motors on 2nd January 2015 at a cost of Sh.1.5 million each on hire purchase system. Payment was to be made as Sh.900,000 down payment on the three...
-
Transport Ltd. purchased three buses from Arvind motors costing ~ 75,000 each on hire-purchase system. Payment was to be made for each bus ~ 45,000 down and the remainder in three equal instalments...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
A soil sample was found to have a CEC of 24.0 cmol c kg -1 . Important: note that a cmol is not the same thing as a cmol c for divalent and trivalent ions! A. How many cmol c kg -1 of Al 3+ would be...
-
(a) What is the resistance between the hands if the skin resistance is negligible? (b) What potential difference between the hands is needed for a lethal shock current of 100 mA? (Note that your...
-
What approaches have been suggested to overcome the seasonality problem related to interim reporting?
-
In a laboratory test of a new automobile engine design carried out at the Colorado School of Mines, the emission rate (in milligrams per second) of oxides of nitrogen was measured for 32 engines at...
-
Comparing Companies within an Industry Refer to the financial statements of American Eagle Outfitters (Appendix B) and Urban Outfitters (Appendix C) and the Industry Ratio Report (Appendix D) at the...
-
Discuss deliberate marketing expectations and choices that made Boo. com's failure certain? Distinguish the strategic business assumptions and decisions with other dot-com era organisations that are...
-
Planning Procurement. An automobile manufacturer wants to award contracts for the supply of five different engine components. Some of the components are used in most models, while other components...
-
Write a program in C++ which declares a pointer to a function that accepts three pointers to integer quantities as arguments and returns a pointer to sum of all quantity.
-
Explain why election pollsters use inferential statistics rather than descriptive statistics to predict the outcome of an election.
-
An investment banker estimates the following probability distribution for the earnings per share (EPS) of a firm. Calculate the expected value of the EPS. x(EPS) P(x) 2.25 .05 2.50 .10 2.75 .20 3.00...
-
Find the mean and standard deviation of the number of successes in binomial distributions characterized as follows: (a) n = 20, p =.5 (b) n = 100, p = .09 (c) n = 30, p = .7 (d) n = 50, p = 4
-
A fair coin is tossed eight times. (a) Use MINITAB to construct a probability function table. (b) What is the probability that you will have exactly four heads?
-
A soft drink company argues that its new cola is the favorite soft drink of the next generation. Ten teenagers were picked to test-drink the cola one by one. Assume that five of them liked the new...
-
Carl had worked hard in his several years of food service management. He lacked a college degree, but he had prevailed in the competitive industry by using common sense and an appreciation of how...
-
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
-
Louie Long started a business called Louie's Lawn Service. The trial balance as of March 31, after the first month of operation, is as follows: REQUIRED 1. Analyze the following adjustments and enter...
-
Based on the following information, prepare the weekly entries for cash receipts from service fees and cash short and over. A change fund of $100.00 ismaintained. Actual Cash Cash Register Change...
-
Enter the following transactions in a cash receipts journal: Nov. 1 Jean Haghighat made payment on account, $750. 12 Marc Antonoff made payment on account, $464. 15 Made cash sales, $3,763. 18 Will...
-
If the bearing pads at \(A\) and \(B\) support only vertical forces, determine the greatest magnitude of the uniform distributed loading \(w\) that can be applied to the beam. \(\sigma_{\text {allow...
-
The beam is constructed from two boards. If each nail can support a shear force of \(200 \mathrm{lb}\), determine the maximum spacing of the nails, \(s, s^{\prime}\), and \(s^{\prime \prime}\), to...
-
The simply supported beam is composed of two W12 \(\times 22\) sections built up as shown. Determine the maximum uniform loading \(w\) the beam will support if the allowable bending stress is...
Study smarter with the SolutionInn App