Assets purchased under Hire-Purchase system were reflected at thr full value & the o/s Intalments payable have been included under Sundry Creditors.
Whats the correct a/c'ing treatment 4 this?
pls help.
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Audit Q.
Replies (1)
The Entry now to make every year on payment of Instalment is -
Loan A/c Dr.
Interest On Loan A/c Dr.
To Bank A/c
Pls. Take the O/S Instalements under Secured Loan,if its secured or Unsecured Loan not under Creditors.
& Group Int. on loan under Expense.
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