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Q 2. Dinesh Ltd. On 1st April 2015, purchased a machine from Rajesh Ltd. On hire purchasebasis. The cash price of the machine was Rs 25,000. The payment was to be made Rs 5000 onthe date of the contract and the balance in four annual instalments of Rs. 5000 each plus interestat 5% per annum payable on December 31s each year, and the first such instalment beingpayable on 31.12.2015. Depreciation is to be charged @ 10% on original cost.Show the journal entries and ledger accounts in the books of both the parties. |
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