difference between

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This query is : Resolved

Sandeep Rathi (Querist)

15 July 2008 Pl let me know the basic diff between
1.Hire Pirchase and Instalments System
2.Cash Flow & Fund Flow staement

CA. Aryendra

CA. Aryendra (Expert)

15 July 2008 Hire Purchase Vs Installment System
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1. Hire Purchase is an agreement of hiring
Installment System is an agreement of outright purchase
2. Under H.P - Property in goods or the ownership remains with hire vendor until the last installment is paid by the purchaser.
Under Inst Sys- The title to goods passes to the buyer immediately on agreement to purchase as is usual in the case of sale.
3. Under H.P - The hirer may return the goods without further payment as to future installments.
Under Inst Sys- The goods are not returnable unless there is some default on the part of the buyer, the buyer is liable for the price agreed to or reasonable price if not agreed
4. Under H.P - Seller may take possession of the goods if the hirer is in default.
Under Inst Sys- Seller can only sue for price if the buyer is in default.
5. Under H.P - The buyer can not hire-out, sell, pledge, assign, destroy, damage or transfer goods.
Under Inst Sys- The buyer may dispose of and give title to any bona fide purchaser.

&&&& Cash Flow Vs Fund Flow &&&&
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Cash Flow Statement : Statement showing changes in inflow &
outflow of cash during the period.

Funds Flow Statement :Statement showing the source &
application of funds during the period.

The Cash Flow S tatement allows investors to understand how
a company's operations are running, where its money is
coming from, and how it is being spent.

Fund Flow Statement is showing the fund for the future
activites of the Company.

Sandeep Rathi

Sandeep Rathi (Querist)

18 July 2008 Thanks ,
But I am not satisfied with cash/ funf flow diff.
I thinks difference can be made with respect to treatment of item which can form part of those statement
pl reply
thanks in advance

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