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8) On 1 April 2014 Ravi purchased a machine on hire purchase system from Rohan Enterprises at a cash price of Rs 5,58,750. Rs1,50,000 was to be paid down payment and the balance in three equal instalments of Rs 1,50,000 each payable annually. The vendor company charged interest @5% p.a. Ravi provided Depreciation @ 15% on Straight line system, all the instalments due are cleared. He closed the books on 31t March every year. Pass the journal entries and prepare necessary ledger accounts in the books of the purchaser.

8) On 1 April 2014 Ravi purchased a machine on hire purchase system from Rohan Enterprises at a cash price of Rs 5,58,750. Rs1,50,000 was to be paid down payment and the balance in three equal instalments of Rs 1,50,000 each payable annually. The vendor company charged interest @5% p.a. Ravi provided Depreciation @ 15% on Straight line system, all the instalments due are cleared. He closed the books on 31t March every year. Pass the journal entries and prepare necessary ledger accounts in the books of the purchaser.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8) On 1st April 2014 Ravi purchased a machine on hire purchase system froin Rohan Enterprises at a cash price of Rs 5,58,750. Rs1,50,000 was to be paid down payment and the balance in three equal instalments of Rs 1,50,000 each payable annually. The vendor company charged interest @5% p.a. Ravi provided Depreciation @ 15% on Straight line system, all the instalments due are cleared. He closed the books on 31st March every year. Pass the journal entries and prepare necessary ledger accounts in the books of the purchaser.
Transcribed Image Text:8) On 1st April 2014 Ravi purchased a machine on hire purchase system froin Rohan Enterprises at a cash price of Rs 5,58,750. Rs1,50,000 was to be paid down payment and the balance in three equal instalments of Rs 1,50,000 each payable annually. The vendor company charged interest @5% p.a. Ravi provided Depreciation @ 15% on Straight line system, all the instalments due are cleared. He closed the books on 31st March every year. Pass the journal entries and prepare necessary ledger accounts in the books of the purchaser.
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