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  3. thankns x purchased three cars from yon hire pur

thankns X purchased three cars from Yon hire purchase basis, the cash price...

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Accounting

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X purchased three cars from Yon hire purchase basis, the cash price of each car being 2,00,000. The hire purchaser charged depreciation @20% on diminishing balance method. Two cars were seized by on hire vendor when second installment was not paid at the end of the second year. The hire vendor valued the two cars at cash price less 30% depreciation charged under diminishing balance method. The hire vendor spent 10,000 on repairs of the cars and then sold them for a total amount of 1,70,000. You are required to compute: (iAgreed value of two cars taken back by the hire vendor and book value of car left with the hire purchaser and (i) Profit or loss to hire purchaser on two cars taken back by the hire vendor

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