x ltd purchased a mini van on jan 1 2006 from sun and co on hire purchase system it 563266

X Ltd purchased a mini van on Jan 1, 2006 from Sun and Co on Hire Purchase System. It was agreed upon to make payment as under:

Rs

Jan 1, 2006

On signing agreement

20,700

Dec 31, 2006

At the end of first year

39,930

Dec 31, 2007

At the end of second year

39,930

Dec 31, 2008

At the end of third year

39,930

Total Hire Purchase Price

1,40,490

Nothing more was payable after 3rd installment. All the installments are duly paid by X Ltd. Interest was reckoned @ 10% p.a.

Depreciation was charged at the rate of 10% p.a.

X Ltd closes its books on 31st Dec every year.

Prepare the following accounts in the books of X Ltd upto Dec 31, 2008

  1. Sun and Co. Account
  2. Mini Van Account
  3. Interest Account

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