Hire Purchase Accounting
This query is : Resolved
Ranjith Kumar
(Querist)
03 February 2009
In Hire purchase accounting the vendor deals in both cash sales and HP sales such being the case, the stock reserve for closing HP stock is to be ascertained using the loading percentage on HP price, will the loading has to be computed by HP price - Cash Price Or HP Price - Cost Price?
CA. B.SRINIVASULU
(Expert)
03 February 2009
Once you sell goods under hire purchase the buyer is the owner of the goods.
If he does not pay the installment you have a safety clause to recover the goods by taking pocession.
It is not clear why you should calcuate for the goods where you do not have ownership.
If he does not pay the installment you have a safety clause to recover the goods by taking pocession.
It is not clear why you should calcuate for the goods where you do not have ownership.
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