On 1st January 2017, Sincomed Company purchased three machines from the Chemical Machineries Ltd. under instalment payment
Question:
On 1st January 2017, Sincomed Company purchased three machines from the Chemical Machineries Ltd. under instalment payment system. The cash down price of each machine was ₹8,865. The total amount was paid in four equal instalments of ₹7,500 on 31st Decmber every year. The Chemical Machineries Ltd. charged interest at 5% per annum. Charge depreciation at 10% per annum on the diminishing balances. Show the Machine Account, Chemical Machineris Ltd. Account and Interest Suspense Account in the books of the purchasing company.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
Question Posted: