Problem 2.0 A Ltd. entered into a hire purchase

agreement with B Ltd. for the purchase

of 100 wagons over a period of three

years from January 1, 2014 by

half-yearly instalments of 7,385 payable

on June 30 and December 31 each year,

the cash price being 400 per wagon and

the rate of interest 6% pa with half-yearly rest.

On January 1, 2015 after paying two instalments A Ltd. transferred their

rights in the agreement to C Ltd for a consideration of 10,000. C Ltd. paid

sum to A Ltd. on 1st January, 2015 and

the next instalments to B Ltd. on due dates.

Show in the form of Journal

Entries how the transactions should

appear in the books of C Ltd. upto

30th June, 2015 when its financial year

ended writing off depreciation @ 10% p.a. Calculations may be done to the nearest $.