it is informed that cash received from the customers is rs 79 200 and that the rate 608197
Fortune (India) sells goods both on Hire-Purchase System and cash retail system. He has prepared one Trading Account for both the business and has treated total goods supplied to customers on H.P. system as sales which is as under:
|
Apr 1, 2009 |
Rs |
Mar 31, 2010: |
Rs |
|
Stock out on hire at hire purchase price |
60,000 |
Stock out on hire at hire purchase price |
69,000 |
|
Stock on hand (in the shop) |
7,500 |
Stock on hand (in the shop) |
10,500 |
|
Installments due (customers still paying) |
4,500 |
Cash received in Installments during the year |
1,20,000 |
|
Prepare necessary Ledger Accounts under stock and Debtors System |
It is informed that cash received from the customers is Rs 79,200 and that the rate of gross profit for H.P. System is 32% on Cost and Cash Sales are made at the H.P. Price as reduced by 1/11.
He now wishes to take credit for such proportion of profit as the installments bear to the total amounts receivable under the H.P. agreements and to adopt stock method of dealing the H.P. transactions. Construct new Trading Accounts for both business separately.