X Ltd purchased a mini van on Jan 1, 2006 from Sun and Co on Hire Purchase System. It was agreed upon to make payment as under:
|
Rs |
||
|
Jan 1, 2006 |
On signing agreement |
20,700 |
|
Dec 31, 2006 |
At the end of first year |
39,930 |
|
Dec 31, 2007 |
At the end of second year |
39,930 |
|
Dec 31, 2008 |
At the end of third year |
39,930 |
|
Total Hire Purchase Price |
1,40,490 |
Nothing more was payable after 3rd installment. All the installments are duly paid by X Ltd. Interest was reckoned @ 10% p.a.
Depreciation was charged at the rate of 10% p.a.
X Ltd closes its books on 31st Dec every year.
Prepare the following accounts in the books of X Ltd upto Dec 31, 2008
- Sun and Co. Account
- Mini Van Account
- Interest Account