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Can u anybody suggest, any method to acount for HP installments.Shall i need to create interest suspence account
Read some books of Accounts(11or12th std)....
there are no. of entries need to be made.
Entry for Hire Purchase :-
(1) on purchase-
Assets A/c..................Dr (Hire purchase price)
To Hire Vendor A/c (cash price of assets)
To Intt. Suspense A/c(total of intt.)
(2) Entry for payment of HP installment :-
Hire Vendor A/c....................Dr.(cash prise in insttalment)
Intt. Suspense A/c...............Dr.(intt. in insttalment)
To Cash/Bank A/c(Total amount of insttalment)
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