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Hire purchase transaction

Accountancy

What do- if there is Morotorium Period exist but interest rate don't known.then how the treatment be. This is the example for better understanding of the matter-20000 cash prize,5000 be paid in 5 equal half yearly installment with a Morotorium Period of ONE year.

Pranav Connecting...

CA Inter

★ 4K+

28-May-20 17:00

391

Answers (3)

(Continue....) Then find out interest rate.

Thread Starter

Pranav Connecting...

CA Inter

★ 4K+

28-May-20 17:03

The method would not change. Just that in the first year, there will be no payment. Rest workings are same. Please note that Interest would be payable even for the moratorium period.