Chennai Kitchen Mart sells goods both on cash and hire purchase basis and records hire purchase transactions on Stock and Debtors System, and closes its Books on Dec 31, every year.
On Apr 1, 2008, it sold a mixie and microwave oven to Sheela: the other particulars are provided as:
|
Particulars |
Mixie |
Micro Oven |
|
Cost Price |
Rs 4,500 |
Rs 8,000 |
|
Down Payment |
Rs 1,000 |
Rs 2,000 |
|
No. of Installments Payable |
10 |
8 |
|
Amount in each Installment |
Rs 500 |
Rs 1,000 |
|
Mode of Payment |
Monthly |
Bi Monthly |
|
First Installment Due on |
May 1, 2008 |
June 1, 2008 |
Sheela paid all the installments due except for those due on Dec 1, 2008. It was decided that the Kitchen Mart would take back Micro Oven at an agreed price of Rs 5,500 and excess amount, if any, will be adjusted against the installment due on mixie. Oven repossessed was sold for Rs 6,000 after repair charges for which amounted to Rs 250.
Prepare necessary ledger accounts to record the above transactions and calculate the profits.