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4. A Ltd. sold 3 cars for a total Cash sale price 6,00,000 on hire-purchase basis to B on 1-1-2015. The terms of agreement provided
4. A Ltd. sold 3 cars for a total Cash sale price 6,00,000 on hire-purchase basis to B on 1-1-2015. The terms of agreement provided 1,20,000 as down payment and the balance of the cash price in three equal instalments together with interest at 12% p.a. calculated at yearly rest. The instalments were payable on the following dates : 10 First instalment on 31-12-2016 Second instalment on 31-12-2017 Third instalment on 31-12-2018. B paid the two instalments on time but could not pay the third instalment on due date. As a consequence, the hire vendor repossessed the two cars and valued them at 60% of the cash price. B charges depreciation at 15% p.a. on diminishing balance method. Prepare necessary Ledger Accounts in the books of B
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