Mr. Glostar commenced business on 1s* April, 2014. He sells washing machines of a standard type and size on hire purchase terms. The total amount, including interest payable for each washing machine...


Mr. Glostar commenced business on 1s* April, 2014. He sells washing machines of a standard type and<br>size on hire purchase terms. The total amount, including interest payable for each washing machine is<br>$ 4,500. Customers are required to pay an initial deposit of $ 900, followed by eight quarterly<br>instalments of $ 450 each. Following trial balance is extracted from Mr. Glostar's books as on 31-3-<br>2015 :<br>TRIAL BALANCE<br>Debit<br>Credit<br>Particulars<br>$<br>$<br>Capital<br>|15,00,000|<br>Furniture<br>1,50,000<br>Purchases<br>27,00,000<br>Cash Collected form Customers<br>11,47,500<br>Salaries and Wages<br>1,92,000<br>Office Expenses<br>82,500<br>Creditors<br>2,49,000<br>2,94,000<br>Bank Overdraft<br>Bank Interest<br>6,000<br>60,000<br>31,90,500 31,90,500|<br>850 machines were sold during the year on hire purchase terms. Mr. Glostar has decided to take<br>credit of profits and interest in proportion to cash collections. He purchases at a cost of $ 3,000 each.<br>Drawings<br>Provide 8% depreciation on furniture.<br>You are required to prepare the Hire Purchase Trading A/c, Profit and Loss A/c and Balance Sheet as<br>on that date. All workings are to be shown.<br>

Extracted text: Mr. Glostar commenced business on 1s* April, 2014. He sells washing machines of a standard type and size on hire purchase terms. The total amount, including interest payable for each washing machine is $ 4,500. Customers are required to pay an initial deposit of $ 900, followed by eight quarterly instalments of $ 450 each. Following trial balance is extracted from Mr. Glostar's books as on 31-3- 2015 : TRIAL BALANCE Debit Credit Particulars $ $ Capital |15,00,000| Furniture 1,50,000 Purchases 27,00,000 Cash Collected form Customers 11,47,500 Salaries and Wages 1,92,000 Office Expenses 82,500 Creditors 2,49,000 2,94,000 Bank Overdraft Bank Interest 6,000 60,000 31,90,500 31,90,500| 850 machines were sold during the year on hire purchase terms. Mr. Glostar has decided to take credit of profits and interest in proportion to cash collections. He purchases at a cost of $ 3,000 each. Drawings Provide 8% depreciation on furniture. You are required to prepare the Hire Purchase Trading A/c, Profit and Loss A/c and Balance Sheet as on that date. All workings are to be shown.

Jun 11, 2022
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