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On 1st April 2016, Chaudhary Harpal Singh purchased a Tractor of thecash price of Rs. 2,20,000 on hire-purchase system from Escorts Ltd. Rs.20,000 were paid immediately and the balance in 4 annual installments ofRs. 50,000 each with interest at 8% per annum. The depreciation is to becharged at 10% p.a. on written down value method. Harpal Singh paid 2installments and failed to pay the third installment. Escorts Ltd. took awaythe tractor by paying him Rs. 90,000 in cash. Make necessary ledgeraccounts in the books of Harpal Singh. Books are closed on 31" Marchevery year. |
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