On January 1, 2015, A purchased a machine (under Hire Purchase System) from B valued at 37,000.
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On January 1, 2015, A purchased a machine (under Hire Purchase System) from B valued at ₹37,000. A sum of ₹5,000 was paid at the time of signing the contract and the balance in four yearly instalments of ₹8,000 plus interest at 5% payable on 31st December each year. The machine was depreciated at 10% on Diminishing Balance Method. Show Machine Account, Interest Suspense Account and Vendor’s Account for four years in the books of A.
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To solve this problem we need to prepare the Machine Account Interest Suspense Account and Vendors Account for four years Well calculate the values of ...View the full answer
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Related Book For
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
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