Hire Purchase Accounts Sums 1-6 PDF
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Summary
This document contains examples of hire purchase accounting problems (sums 1-6). It includes instructions to prepare journal entries and ledger accounts for buyers and sellers. The problems involve cash prices, down payments, and installment calculations with interest and depreciation.
Full Transcript
Module 2- Accounting for Hire Purchase Journalise the transactions for all the years in the books of Buyer A Journalise the transactions for all the years in the books of Buyer A and Seller B You are required to prepare ledger accounts in the books of buyer You are required to prepare le...
Module 2- Accounting for Hire Purchase Journalise the transactions for all the years in the books of Buyer A Journalise the transactions for all the years in the books of Buyer A and Seller B You are required to prepare ledger accounts in the books of buyer You are required to prepare ledger accounts in the books of buyer and seller 5. Cash price of P&M 200,000 DOP 1/4/2019 Down payment 100,000 Bal in 2 equal annual instalments with interest at 15% p.a from 31/3/2020 Buyer P Depreciation at 10% p.a. on WDV Seller Q Accounts closed on 31st March AFM SEM 1 Page 1 Buyer P Depreciation at 10% p.a. on WDV Seller Q Accounts closed on 31st March You are required to prepare ledger accounts in the books of buyer and seller 6. Cash price of P&M 300,000 DOP 1/4/2019 Down payment 30,000 Bal in 3 equal annual instalments with interest at 15% p.a from 31/3/2020 Each instalment is Rs.118,254 including interest. Buyer P Depreciation at 10% p.a. on WDV Seller Q Accounts closed on 31st March You are required to prepare ledger accounts in the books of buyer and seller AFM SEM 1 Page 2
