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

July 3rd,2008 | Tags:Hire Purchase | Category:Hire Purchase | Leave a comment

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 [...]

December 12th,2007 | Tags:Hire Purchase,Hire purchase accounting | Category: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 [...]

December 12th,2007 | Tags:Credit sales,Hire Purchase,Rental | Category:Hire Purchase | One comment