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Commerce · Q2579

Accounting

Graduate and Post Graduate · Commerce · question 2579

Q2579

The cash price of a machine is Rs. 1,20,000 and its hire purchase price is Rs. 1,50,000 to be paid in five equal yearly instalments. If a company purchases the machine on hire purchase basis, the amount of capital expenditure will be:

A.
Rs. 1,20,000
Answer
B.
Rs. 1,35,000
C.
Rs. 1,50,000
D.
Rs. 1,60,000

Answer: Option A

Solution

Answer: Option A
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