I need solution of question 2 only from practical questions step by step....Solve as soon as

Mr. Salman purchased a machine from Ahmad Motors on hire purchase agreement, the terms of the agreement were Rs 4000 payable down, Rs 6000 at the end of first year, Rs 5000 at the end of second year.................................

HA purchand ** CHAPTER-107 THEORETICAL QUESTIONS you understand by Hire Purchase System? What do you understa 0.1 What are the methods of recording journal entries in the books of hire purchaser and his Tebia Q2 vendor? 0.3 iscuss the accounung treatment of repossessed goods on default made by hire purchaser. note on Hire Purchase Trading Account? e the different ways of calculation of cash price? What is instalment purchase system? Discuss the journal entries to be passed in the books Write the different od: 0.5 46 0.6 of purchaser and vendor PRACTICAL QUESTIONS 0.1 WIRE PURCHASE SYSTEM: From the following information you normation you are required to pass journal entries in the books of Hire Purchaser for 2 years: (1) Cash price of a machine Rs. 111,750. (ii) Cash down payment Rs. 30,000: and balance be paid in three installments of Rs. 30,000 each at the end of 1", 2 and 3rd year. () Rate of interest charged by seller is 5% p.a. on outstanding balance. (iv) Rate of depreciation is 10% p.a. on diminishing balance method. 5 TL 2 Mr. Salman purchased a machine from Ahmad Motors on hire purchase agreement, the terms of the agreement were Rs. 4,000 payable down, Rs. 6,000 at the end of first year, Rs. 5,000 at the end of second year and Rs. 2,000 at the end of third year. The cash price of the machine is Rs. 15,980. The vendor charges interest at the rate of 5% on the annual balances, depreciation to be provided at 10% under reducing instalment system. REQUIRED: Give journal entries in the books of Mr. Salman. Show the machinery account at its written down value in the balance sheet of Mr. Salman at the end of 2nd year. Ans: [Balance of Machine at the end of 2nd year Rs. 11,036] A Colliery Company acquired a wagon on hire purchase system over the term of two years, starting from 15 January, 2009. The instalments of Rs. 50,000 each were payable half yearly, the first payment being made on 30 June, 2009. The cash value of the wagon was Rs. 185,875. The wagon company charged interest at 6% per annum with half Yearly rests. The Colliery Company charged depreciation at 10% p.a. on diminishing balance method. nu the ledger accounts in the books of the Colliery Company, 5591