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Hire Purchase

I have doubt interest accrual Eg. 3 van purchased . 3 equal annual instalments. In 2nd year 2 van reposed by Vendor. Whether i should account interest for remaining 1 van in 3rd year or its need not be accounted? Kindly verify


Chidhambaram Pillai

Chidhambaram Pillai

CA Inter

1K+

15-Jul-20 21:24

32

Answers (2)

Usually repossession as part of breach of contract.so no more contract validity for the interest payment is there after the breach of contract.What happens in the final year is the settlement that is part of the breach. And if in need they can also create a new contract for the balance settlement amount to happened in future years. In that new contract interest may mentioned. But this must be specifically mentioned, otherwise we should think in usual way as final settlement for the contract is just happened in 3 rd year.


Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

16-Jul-20 01:46

Thank you


Chidhambaram Pillai

Chidhambaram Pillai

CA Inter

1K+

16-Jul-20 06:59

Happy Mother's Day
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