Basic query in accounting
This query is : Resolved
pavankumar
(Querist)
07 October 2013
Whether below Statement is correct?
In case of Hire purchase transaction, possession of goods is with Buyer,Ownership is with Seller and risk & reward is associated with ownership is also with seller Hence Vendor must Depreciate the asset ,i think because substance over form will not applicable and also economic substance is not about possession and/or use, its about the risks and rewards.
I will be very much thankful to you.
In case of Hire purchase transaction, possession of goods is with Buyer,Ownership is with Seller and risk & reward is associated with ownership is also with seller Hence Vendor must Depreciate the asset ,i think because substance over form will not applicable and also economic substance is not about possession and/or use, its about the risks and rewards.
I will be very much thankful to you.
07 October 2013
Under a hire purchase contract,
the buyer is leasing the goods and does not
obtain ownership until the full amount of the
contract is paid.
the buyer is leasing the goods and does not
obtain ownership until the full amount of the
contract is paid.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
