Hire Purchase Accounting - Exercise

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Exercise - Hire Purchase

The machine was sold on 1 January 2016 to Izzaty on hire purchase terms. Below are the details of the transactions;

Cash price                RM5,000
Hire purchase rate    10%
Instalments amount  RM1,319 (payable on 31 December each year)
No of instalments      5
Cost of the machine  RM3,900

Required:
a) Hire purchase sales
b) Hire purchase debtor
c) Hire purchase interest
d) Cost of hire purchase goods
e) Cash book
f) Trading account (extract) for year 2016 - 2020