On Jan 1, 2009 Pandey purchased a laptop from Jaspal Singh on Hire Purchase System over a period of three years. Rs 10,000 was payable on delivery on Jan 1, 2008 and the balance by following installments on 3 Dec 1, in each year:
|
Rs |
|
|
2008 |
20,000 |
|
2009 |
20,000 |
|
2010 |
Balance amount |
Jaspal Singh charged interest at 10% on the yearly balances. The cash value of the laptop was Rs 60,000. Depreciation @ 20% p.a. on diminishing balances were written off in each year. Pandey paid all the installments on the due date. Show the Laptop Account and Pandey’s Account in the books of Singh for three years Dec 31, 2010.