Hire purchase problem....????

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This query is : Resolved

Guest

Guest (Querist)

06 April 2010 Goods sold on HP at cost plus 50%

1- stock with customers at HPP (opening) Rs 162000

2- stock in hand at shop (opening) Rs.324000

3- Instalments overdue(opening) Rs.135000

4- purchases during the year Rs 1080000

5- Goods repossesed(instalment not due Rs. 36000) Rs. 9000

6- stock at shop excluding goods repossesed (closing) RS 360000

7- cash recieved during the year Rs 1035000

8- Instalments overdue(closing) Rs162000

Vendor spent Rs2000 on goods repossesed and then sold it for Rs15000. Calculate Profit/loss on repossession and profit/loss on sale? Kindly show workings also if possible...

Thanks in advance...

shakuntala chhangani

shakuntala chhangani (Expert)

07 April 2010 HP Trading A/c
To bal b/f 162000 By Stock reserve 54,000
To HP Drs. 135000 By cash 1035000

To GSOHP 1044000 By GSOHP 348000
To gds rep 12000 By goods repos. 36000
By HP Drs. 162000
To St. Res 36000 By HP st. 108000

To Gen P/L 354000
1743000 1743000

repossessed stock A/c
To HP Tr A/c 36000 By HP Tr A/c 12000
By loss on rep
(B.F.) 15000
By Bal c/f 9000
36000 36000
To Bal b/f 9000 By C/B A/c 15000
To C/B A/c 2000
To Profit on
Repossess. 4000
15000 15000

Trading A/c
To op stock 324000 By goods sent on Hp
To purchase 1080000 (B.F.) 1044000
By Bal C/f 360000
1404000 1404000

Hp Cl. St. = 162000+135000+1044000-1035000-36000-162000 = 108000
Loading = 50% i.e. 1/2 on cost therefore 1/3 on HPP
Revert back to me if u have any further doubt
Regards, CA Shakuntala Chhangani

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