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The cash price of a machine which is sold on hire-purchase aystem on April 1, 2020, outstanding balances. Find out the amount of interest included in each, Problem 10, interest on, Number of Ins-, talment, No. of Instal-, ment due, Solution, Ratio, Interest (, 1, 4, 4:10, 4,000 x 4, 1,600, 10, 4,000 x 3, 2., 3., 3: 10, 10, - 1,200, 2: 10, 4,000 x 2, 800, 10, 4,000 x 1, 10, IN THE BOOKS OF HIRE PURCHASER, 4., 1, 1: 10, 10, 400, Total, = 4,000, Hire Vendor's Account, 2020, April 1 To Bank A/c, June 30 To Bank A/c, Sept. 30 To Bank A/c, Dec. 31 To Bank A/c, 2021, Mar. 31 To Bank A/c, 2020, 10,000 April 1 By Machinery A/e, 11,000 June 30 By Interest A/e, 11,000 Sept. 30 By Interest A/c, 11,000 Dec. 31 By Interest A/e, 2021, 11,000 Mar. 31 By Interest Ae, 50,000, 1,600, 1,200, 800, 400, 54,000, 54,000, Problem 17, A acquired a machinery under Hire-Purchase System from ABC Company Ltd. The, cash price of the machine was 10,050 which was payable as follows:, 72,000 on delivery, 7 3,000 after three months; 4,000 after six months and 2,000, after 12 months., Open Vendor's A/c only in the books of A. Interest is chargeable annually., Solution, Calculation of Interest, Interest = Total Instalments paid - Balance of Cash Price, =7 9,000-7 8,050 = 7 950, Calculation, onths, Amount, Product, Interest, Cash Price, 27,000, 27,000 950 x, 57,000, 450 3,000-450 2,550, 9,000, 18,000, 3 9,000 - 3,000 = 6,000 18,000 950 x, 57,000, 300 4,000-300 3,700, 12,000, 6 6,000 - 4,000 = 2,000 12,000 950 x, 200 2,000-200 = 1,800, 8,050, 57,000, 950, 57,000, IN THE BOOKS OF A, ABC Company Ltd., After, 3 months To Cash A/c, By Machinery A/c, After, months By Interest A/c, 10,050, 450, 300, 200, To Cash A/c, 6 months To Cash A/c, 6 months To Cash A/c, 2,000, 3,000, 4,000 6 months By Interest A/c, 2,000 6 months By Interest A/e, 11,000, 11,000, 1

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PRACTICE MA, 126, X Finance Corporation Lad, 72018, 1,000 April 1 By Machinery A, Dr, 127, 2018, April 1To Caah Ale, 2019, Mar 31 To Cash Ale, Mar 31 Te Balanoe old, Mor 3 ByBenk A, Mar 31 Blines dl, To Balan old, 2019, 2,000 Mar 31 By Interest Ale, 723, 6.720, 968.23, 9512.73, 20, 1912.73, To Intereat Ae, 19.512 73 MarR y, 2.5/2.73, Te Belance of, 2020, Mar. 31 Te Canb Ale, Mar 31 To Balance old, 2019, 2,000 April 1 By Balance bid, 2020, 20,000, 1,909, To lnteret, Mar 31 By Interest Ale, Providon for Unreiond, 3909, Aewnt, 2020, 1,909 April 1 By Balance bid, 18, 21 To Balance olf, 208, 3142 73 Mar PALAM, 2020, April 1 Te Caab Ale, 2018, 1,011 Apr 1 y B, 2,130 92, 1909, Ne Colmation has been made neert to repe, Problem 25, 1, 1.366, 19, Mer 31 To P&LA, Mar 31 To Balance ofd, 1342 3, 3,142.73, 3000, Mar 31 To P&LAe, Mar 31 To Balance od, 2019, 1,047 36 Ape I yBlane, 21200, Jyoti Machinery works charps interest @ 2% pa. Vendor purchased the madi, 1,073.57, 2,120.92, 9.000 and the cash price was r 96,240. You are required to prepare Hire Pn, Acount and Provision for Unrealised Profit Account in the Books of Hire vend, Solution, 2000, 1,073.57 Agr 1 By Balann bid, 2021, Caleulation of Interest, Mar. 31 To P&L Ae, Interest, Instalment, 95,240, Cash Price Interest, 20,000, Tutal, Wrking Notes:, 1 Caleulation of Unrealiaed Profit, 57.121, 2., -20,000, 75,240, -18,119, Down Payment, 75,240 x5, 100 x 2, 57,121 x5, 100x 2, 20,000, 2017-18-, x5340-, 96,240, 1,881, 38,549, 2018-19-, 95,240, 18,119, 1,881, 20,000, 5.340-72130, 57,121, -18,572, -1,428, 19,512 79, 95,240, 18,572, 1,428, 20,000, 2019-20-, 43- LONT 36, 38,549, 38,549 x5, 100x 2, 19,512.73 20,000-19,512.73 r 487.27, 19,036.27, 20,000, 2 Calrulation of HRealised Profit:, 7963.73, 963.73, 18,572, 4.240-LLA, 95,240, -19,036.27, 2018-19-, 19,036 27, 96,240, 19,512 7340-t LOS, 19,512.73, 487.27 20,000, 2019-20, x4,340- L4T 35, Hire Purchaser's Account, 2020-21, 95,240, 2017, Apr. 1 To Hire Sales A/e, 2018, Mar. 31 To Interest A/e, 2017, 95,240 Apr.1 By Bank Ale, 1 Prdit95,240-90,000-&,240, Problem 26, 20,000, On Ist April, 2019, Amar purchased on hire-purchase aystem from Bihari Plant, Ndat 22,305 payment to be made by four half-yearly instalments of t 6,000;interest, charged at 3% per half-year. Amar paid the Brst instalment on Ist Oct., 2019 but, pay the next. By virtue of a clause in the agreement, Bihari seized the plant on, Apnil, 2020, On 3rd April, 2020 after negotiation; Amar was allowed to retain the, which the original cash price was ? 10,000 and be was to bear the loss on the, 2018, 1,881 Mar. 31 By Bank A/e, Mar. 31 By Balance c/d, 20,000, 67,121, 97.121, 97.121, 2018, Apr. 1 To Balance b/d, 2019, Mar. 31 To Interest A/e, 2019, 57,121 Mar. 31 By Bank A/e, Mar. 31 By Balance cld, 20,000, 38,549, 1,428, after 31st March, 2020. was into for the of the balance., Pmainder which was sold on that date for 11,000. Bihari waiving the accruing, Show in books at 6% per annum, KR 649, Dlant Account after every six months.