Shiva Ltd commenced business on Jan 1, 2009. It sells both on Hire Purchase System and Cash Retail System. Information about terms is given below:
|
VCP |
VCR |
|
|
Rs |
Rs |
|
|
Cash Price |
10,000 |
30,000 |
|
Cost |
8,000 |
24,000 |
|
Cash down for Hire Purchase |
2,000 |
6,000 |
|
Monthly Installment |
1,000 |
3,000 |
|
No. of Installments |
10 |
12 |
The company purchased goods costing Rs 1,00,00,000 in all and made cash sales totaling Rs 86,00,000. Stock in hand on Dec 31, 2009 was valued at R. 12,00,000. H.P. transactions were as follows:
|
No. sold |
Installment |
Installments Due |
|
|
Collected |
(Customer Praying) |
||
|
VCR |
20 |
110 |
10 |
|
VCR |
40 |
260 |
15 |
3 VCPs and 2 VCRs on which only 4 installments were collected were repossessed and were valued at Rs 32,000. This is not included in the figure of stock mentioned above. Prepare accounts showing the profit or loss made by the company by adopting Stock and Debtors System.