FMAccounting.com | Accounting | Finance | Management |Treasury | Taxation |

• Home
• This Blog
• Author
• Accounting Bodies
• Subscribe
• Accounting Terms
• Revision Notes
• Questions
• E-Books
• Featured

Archive for the ‘Hire Purchase’ Category

How To Apportion Hire Purchase Interest-Using Sum Of Digit Method Or Rule Of 78 (Part 3 of 3)

Hire purchase interest are apportioned based on the reducing balance method (part 1) and on Straight line basis(part 2).
This final part 3 looks at another commonly used method to apportion hire purchase interest namely the Sum of digit method of Rule of 78 

December 1, 2009  Tags: hire purchase interest, interest apportioned, rule of 78, sum of digit  Posted in: Hire Purchase  No Comments

How To Apportion Hire Purchase Interest-Straight Line Method (Part 2 of 3)

Part 1 shows the reducing balance method . 
This article looks at how the hire purchase interest is apportioned over the period of the agreement using the Straight Line method. 

November 30, 2009  Tags: apportion interest, hire purchase interest  Posted in: Hire Purchase  No Comments

How To Apportion Hire Purchase Interest-Reducing Balance Method (Part 1 of 3)

Note that the hire purchase interest needs to be apportioned over the period of the agreement. The commonly used methods are the Reducing Balance method, Straight Line method and Sum of Digits or Rule of 78 method 
Below example illustrate the Reducing Balance method to apportion hire purchase interest:- 

November 30, 2009  Tags: apportion interest, hire purchase interest  Posted in: Hire Purchase  No Comments

Difference Between Hire Purchase And Installment System

For those unfamiliar between Hire Purchase and Installment System, tabulated below in summary some of the differences:

Hire Purchase

Installment System

Is an agreement of hiring

Is an agreement of outright purchase

Property in goods or the ownership remains with hire vendor until the last installment is paid by the purchaser.

The title to goods passes to the buyer immediately [...]

July 3, 2008  Tags: Hire Purchase  Posted in: Hire Purchase  No Comments

Accounting For Hire Purchase In The Purchaser’s Book

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 expenditure over the period [...]

December 12, 2007  Tags: Hire Purchase, Hire purchase accounting  Posted in: Hire Purchase  3 Comments

Hire Purchase, Credit Sales And Rental Agreement

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 vendor hire charges equivalent to [...]

December 12, 2007  Tags: Credit sales, Hire Purchase, Rental  Posted in: Hire Purchase  One Comment

• Tags

  ACCA News ACCOUNTING FRAUD IN MALAYSIA Accounting principles Accounting Rate Of Return Accounting Software Accounting Standards Accounts Payable Activity based costing questions Activity based costing questions and answers activity based costing system advantages apportion interest Arms length Asian Tax News asset quality BALANCED SCORECARD Balance sheet Bankruptcy banks BCG matrix benefits of activity based costing system Best-in-class-kpi Bonus issue Brand Brand Building Budgeting Techniques; BUSINESS STRATEGY Capital Investment Appraisal Methods Capital Investment Appraisal Questions Cash Cash Conversion Cycle cash conversion cycle definition Cash flow Cash flows cash flow statement Cash Management Cash operating cycle conflicts of interest corporate strategy Corporate Tax Credit control credit department kpi Credit management Credit sales Credit vetting Daily Working Cycle Days Inventory Outstanding Days Sales Outstanding Debt departmental accounting DIO Dividend Dividend policy DuPont Model Earnings Economic Value Added Definition Economic Valued Added Effective Tax Rate Effective Transfer Pricing System EVA extend credit Finance Lease FINANCE ROLE Financial Perspective Financial statements Foreign Exchange Foreign exchange strategies Foreign exchange transactions Franchise Franchising Franchising advantages Free agreements Free agreements on conflicts of interest Free M&A Confidentiality Agreement Free tenancy agreement FRS FX FX foreign exchange terms FX Internal Hedging Method Hire Purchase Hire purchase accounting hire purchase interest How to IAS IFRS Income statement India transfer pricing India transfer pricing system Internal hedging Internal process perspective examples International Accounting Standards Inventory IPO Joint Venture Joint Venture Agreement KPI Learning & Growth perspectives examples Legal M&As M&As Malaysia Tax Budget 2010 Malaysia transfer pricing Management Services MASB Merger Merger & Acquisitions MIA Net Present Value NPV OHQ Operating Lease Operational Head Quarter Operational kpi Operational kpi examples Order to cash cycle Outsource Outsourcing Overtrading Payables Payback Product life cycle costing Profitability index Ratio Analysis REITs Rental Risk Management Risks ROI on Accounts Receivable sample agreement Shared Service Centre SOP SSC Standard Costing Questions Standard Operating Procedures stock stock management Strategy sukuk Supply Chain Timing differences trade reference Tranfer pricing TRANSFER PRICING Transfer pricing method Transfer Pricing System TREASURY articles What is Will WORKING CAPITAL working capital requirements

• Categories

  • ACCOUNTING FRAUD/SCANDALS
    • Malaysia & Asia Pacific
    • Other Countries
  • Accounting Software
  • ACCOUNTING TOPICS
    • Accounting for Lease
    • Accounting Principles
    • Accounting Questions
    • Accounting Standards
    • Accounting Updates/News
      • MASB News
      • MIA News
    • Hire Purchase
    • Joint Venture(s)
    • Others
  • ASIA PACIFIC REGION
    • India
    • Indonesia
    • Malaysia
      • Govt Aids
      • IDR
    • Singapore
    • Vietnam
  • BEST ACCOUNTING PRACTICES
    • BALANCED SCORECARD
    • Outsourcing
    • Shared Service Centre
  • BUSINESS MANAGEMENT
    • Branding
    • BUSINESS STRATEGY
    • Corporate Governance
    • Human Resources
    • Performance Mgmt
  • CORPORATE FINANCE
    • Corp. Restructuring
    • Dividend Policy
    • EVA
    • Franchising
    • IPO/Privatisation
    • M&As
  • CREDIT MANAGEMENT/CONTROL
  • FINANCE ROLE
    • Finance Role/KPA/KPI
    • Financial Operations
    • Financial Reporting
    • Financial Strategy
    • Sample Agreements
    • SOP
  • Financial Forecasting
  • GLOSSARY
  • Government Linked Companies(GLC)
  • HUMOURS/JOKES
  • INSPIRATIONS
  • INTERNAL CONTROLS/AUDITS
  • INTERPRETATION:ANNUAL REPORTS
    • Articles
    • Financial Statements
    • Ratio Analysis
      • Banks/Finan.Institutions
      • Du Pont Model
      • For Companies
  • MANAGERIAL ACCOUNTING
    • Activity-Based Costing
    • Budgeting
    • Capital Investment Appraisal
    • Pricing Decision
    • Short Term Decision Making
    • Test Question Bank
  • Personal Finance
    • Financial Planning
  • Risk Management
  • Supply Chain
    • Commercial Terms
    • Supply Chain Mgmt
  • TAXATION SECTION
    • Corporate Tax
    • Indirect Tax
    • Personal Tax
    • Taxation News
    • TRANSFER PRICING
  • TREASURY articles
    • Forex Management
    • Islamic Capital markets
    • Sources of Financing
    • Treasury Terms
    • Venture Capital
  • WORKING CAPITAL MANAGEMENT
    • Accounts Payables
    • Cash conversion cycle
    • Cash Management
    • Inventory Mgmt

• Recent Articles

  • How To Select The Correct Accounting Software(Part 2of2)
  • How To Select The Correct Accounting Software Or Package for your business(Part1of2)
  • China could overtake US by 2020: PWC
  • Accounting Fraud/ Irregularities in PN17 Company Ho Hup Construction Company Bhd
  • How Can Computerized Sales Ledger Assists In Credit Management

• Recent Comments

  • Cornelius on Characteristic Of Finance Lease
  • Carolyn Pinilla on Temasek Holding’s Disappointing Financial Results For Last Year
  • wm on Performance of Companies Listed in Bursa Saham Malaysia from 2007 to July 2009

• Archives

  Select Month January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 May 2008 April 2008 March 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006

•  

  March 2010

  M	T	W	T	F	S	S
  « Jan
  1	2	3	4	5	6	7
  8	9	10	11	12	13	14
  15	16	17	18	19	20	21
  22	23	24	25	26	27	28
  29	30	31

• Blogroll

  • Anime Field
  • EssayRep
  • House of Dell
  • Lasik World
  • Taxgrotto.com
  • The Acer Blog
  • ToshibaReviews
  • Towards University

• Resource Sites

  • Bookkeeping
  • College Accounting
  • MBA-Accounting & Finance
  • Principles Of Accounting
  • REITS.a-z-finance.net