3D On 1 Jan 2014 Frontech Ltd., acquired machinery on hire purchase system. The terms of the contract were as follows: A) Cash price of the machine was Rs. 3,00,000. B) Payment on signing the agreement C) The balance by annual instalments of Rs. 80,000 plus interest. D) Interest chargeable on outstanding balance was 6% p.a. E) Depreciatioon is to be written off at 12% on straight line method. Pass the journal entries in the books of Frontech Ltd, the books are closed on 31" Dec every year Rs. 1,20,000

3D On 1 Jan 2014 Frontech Ltd., acquired machinery on hire purchase system. The terms of the contract were as follows: A) Cash price of the machine was Rs. 3,00,000. B) Payment on signing the agreement C) The balance by annual instalments of Rs. 80,000 plus interest. D) Interest chargeable on outstanding balance was 6% p.a. E) Depreciatioon is to be written off at 12% on straight line method. Pass the journal entries in the books of Frontech Ltd, the books are closed on 31" Dec every year Rs. 1,20,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.
Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
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