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This article deals the Accounting treatment of Hire Purchase Agreement of Purchaser: In the Purchaser’s Books Goods on hire purchase are treated as Assets upon receipt. The cash price is recorded as Cost of Assets re:Fixed Assets and The interests on hire purchase are charge to the Profit &Loss account as revenue [...] This article deals with the features of Hire Purchase and the differentiation between Hire Purchase,Credit Sale and Rental Agreement:- Features of Hire Purchase When goods are purchased under a Hire Purchase Agreement: Vendor of the goods leases the asset to the purchaser on the terms that the purchaser shall pay to the [...] Sometimes,when a company has spare production capacity,it is willing to fulfill SPECIAL ORDERS for non-regular customers. Normally,the prices quoted are lower than those regular customers. So when do a Company Accept or Reject a Special Order? Generally,the rule is to accept the [...] At times,management needs to decide whether to manufacture the product or to buy the ready made from other companies. The following are some reasons to buy from other companies: Flexibility to meet urgent demand of customers;Overcome limiting factor problem ( Part 3);Concentrate on its [...] As a result of limited supply of resources constraint,a company normally cannot produces as many products as it wish. The limited supply of resources can be in many forms like limited cash,labor time,material/machine availability and others. In line with the limited resources,the production manager therefore needs to plan [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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