Rado Cabs purchased an omni van on Jan 1, 2008 from Narain & Co, Delhi on hire purchase basis. It was agreed upon to make payment as under:
|
Rs |
||
|
Jan 1, 2008 |
on signing the agreement – |
62,100 |
|
Dec 31, 2008 |
at the end of first year – |
1,19,790 |
|
Dec 31, 2009 |
at the end of second year – |
1,19,790 |
|
Dec 31, 2010 |
at the end of third year – |
1,19,790 |
Nothing more payable after third installment. All the installments are duly paid by Rado Cabs. Interest was reckoned @ 10% p.a. depreciation was charged @ 20% p.a. on diminishing balance. Rado Cabs closes its books on 31 Dec every year. Prepare the following accounts in the books of Rado Cabs upto Dec 31, 2010. (1) Narain & Co. Account (2) Omni Van Account and (3) Interest Account