Chapter 12

Accounting for Hire - Purchase and Installment

LEARNING OBJECTIVES

After studying this chapter, you will be able to understand

  1. Meaning of Hire-Purchase System

  2. Meaning of the Terms Associated with Hire-Purchase System

  3. Meaning and Contents of Hire-Purchase Agreement

  4. Salient Features of Hire-Purchase System

  5. The Components of Total Hire-Purchase Price and the Process of Calculation and Allocation of Their Different Situations

  6. The Rule 78

  7. The Accounting Treatment – Methods of Recording Transactions in the Books of Hire Purchase and Hire Vendor

  8. The Meaning of Default and Repossession and the Accounting Treatment: Full Repossession and Partial Repossession

  9. The Format of Hire-Purchase Sales Register and the Method of Usage

  10. The Methods ...

Get Financial Accounting now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial