hire purchase

Accountancy

What will be the journal entry the hire vendor pass while making an agreement of hire purchase ?

Snehashis Mohanty

CA Inter

★ 35

04-Jun-23 20:20

747

Answers (3)

No entry will be passed while making an agreement as no consideration or asset exchanged. Only during the transfer of asset and downpayment the 1st entry will be passed.

Shankara Vel

CA Final

★ 4K+

04-Jun-23 20:30

Shankara Vel

No entry will be passed while making an agreement as no consideration or asset exchanged. Only during the transfer of asset and downpayment the 1st entry will be passed.

Ok tell me what will be the entry

Thread Starter

Snehashis Mohanty

CA Inter

★ 35

04-Jun-23 20:32

Thread Starter

Snehashis Mohanty

Ok tell me what will be the entry

Hire Purchaser A/c Dr. To Hire Sales A/c (Being an asset sold on hire purchase) Bank A/c Dr. To Hire purchaser A/c (Being down payment received)

Shankara Vel

CA Final

★ 4K+

04-Jun-23 20:34