75% 10 / 10 QUESTION 1 QUESTION 4 River Enteprise purchased a motor van and entered into a hire purchase agreement with Islamic Bank Bhd on 1 July 2014. The cash price of the motor van is RM150,000. The hire purchase JUU. Both parties have signed 1 agt agreement contains the following term: July 2011 and the amount of deposit paid is RM22,500. The cash price of the van is 15% above its cost Deposit 20% of cash price Instalment 7 quarter instalments (The first instalment due on 30 September 2014), of eigin RM20,000 will be paid for the first 6 quarter instalments and RM11,693 RM14,000 in the final quarter. ement of RM15,500. The list 8% per annum and it is apportioned using reducing December jin the final quarters Interest 10% on outstanding balance. Depreciation 10% straight line on yearly basis.coident and totally damaged. Premium LG tuuu tulee purules ayicile. Due to the Gum, Duyen received a compensation amount RM40,000 from the insurance company. The final payment before termination is RM30,000. After paying the fifth instalment, on 2 October 2015 River Enterprise decided to settle in a full payment and Islamic Bank Bhd agreed to give rebate of 30% on the total finance charge. All payments are made on the due dates. River Enterprise closed their books on 31 December You are required to: each year. Required:w the allocation of interest from December 2011 up to June 2013 (4 marks) a. Calculate the Hire purchase price e, prepare the following accounts for the year ended 2012 and 2013: (2 marks) b. Calculate interest for each instalment Van account (4 marks) Citone c. Calculate the amount of final payment ant Bhd Hire purchase interest payable account (4 marks) d. Prepare the following accounts for the vears years ended 31 December 2014 and 2015 in the books of River Enterprise: (16 marks) (Note: Computation to the nearest RM) i. Hire Purchase Payable - Islamic Bank Bhd ii. Motor vehicle account pre mature termination of the hire purchase agreement. iii. Accumulated Depreciation Car (2 marks) (Total: 22 marks) (10 marks) (Total: 20 marks)