Please help me QUESTION THREEa) ABC Ltd acquired a new packing line from QE Ltd on hire purchase on January 1, 2011. Thecash price (list price) was GHS54,000. The hire purchase agreement is as follows:• Initial deposit payment of GHS9,000 on January 1, 2011;• Payment of two annual instalment of GHS24,000 on December 31 of 2011, 2012 anda final instalment of GHS20,391 on December 31, 2013.• Implicit rate of interest is 25% per annum.It is the policy of ABC to depreciate the PL on straight line basis over 10 years, with nosalvage value.Required:Show the ledger entries for the above transactions in the books of ABC Ltdb) On I October 2018 XYZ Ltd acquired a machine under the following terms.子。王HoursGHSManufacturer's base priceTrade discount (applying to base price only)Early settlement discount taken (on the payable amount of thebase cost only)Freight chargesElectrical installation cost3,150,00020%5%Staff training in use of machinePre-production testingPurchase of a three-year maintenance contractEstimated residual value90,00084,000120,00066,000180,00060,000Estimated life in machine hoursHours used - year ended 30 September 2019- year ended 30 September 202018,0003,6005,4004 - year ended 30 September 2021 (see below)On 1 October 2020 XYZ Ltd decided to upgrade the machine by adding new components at a2,550cost of GHS600,000. This upgrade led to a reduction in the production time per unit of the goodsbeing manufactured using the machine. The upgrade also increased the estimated remaining lifeof the machine at 1 October 2020 to 13,500 machine hours and its estimated residual value wasrevised to GHS120,000.Required:Prepare extracts from the statement of profit or loss and statement of financial position for theabove machine for each of the three years to 30 September 2021.

Depreciation Expense = Initial Cost - Salvage ValueEstimated Useful life Interest Expense =…

ABC Lid acquired a new packing line from QE Ltd on hire purchase on January 1, 2011. The cash price (list price) was GHS54,000. The hire purchase agreement is as follows: • Initial deposit payment of GHS9,000 on January 1, 2011; • Payment of two annual instalment of GHS24,000 on December 31 of 2011, 2012 and a final instalment of GHS20,391 on December 31, 2013. • Implicit rate of interest is 25% per annum. It is the policy of ABC to depreciate the PL on straight line basis over 10 years, with no salvage value. Required: Show the ledger entries for the above transactions in the books of ABC Ltd