Preparation of Hire Purchase Account And The Vendor’s Account - SS3 Accounting Past Questions and Answers - page 1

Question:

The following transactions were derived from the books of FUMI CO. for the month of August 2022. You are required to prepare in tabular form:

Date	Transaction	Instalment (₦)	Interest (₦)	Total (₦)	Balance (₦)
08/01/2022	Purchased goods	0	0	150,000	150,000
08/05/2022	Received goods	0	0	0	150,000
08/10/2022	Made a down payment	0	0	30,000	120,000
08/15/2022	Paid instalment	20,000	6,000	26,000	94,000
08/20/2022	Paid instalment	20,000	4,700	24,700	69,300
08/25/2022	Received repair invoice and deducted from instalment payment	(5,000)	0	(5,000)	64,300
08/28/2022	Made additional payment	0	0	15,000	49,300
08/30/2022	Received installment	20,000	2,958	22,958	26,342
08/31/2022	Received additional payment and closed the hire purchase account	0	0	26,342	0
Total		60,000	13,658	235,700	0

Note:

The purchase amount was ₦150,000, with a down payment of ₦30,000, leaving a balance of ₦120,000.
Instalments of ₦20,000 were paid on the 15th, 20th, and 30th of August.
On the 25th of August, a repair invoice of ₦5,000 was received and deducted from the instalment payment due on the 30th of August.
An additional payment of ₦15,000 was made on the 28th of August.
The hire purchase account was closed on the 31st of August when the final payment of ₦26,342 was received

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