Respected all,
Can anyone please tell me journal entries regarding "goods repossessed" in hire purchase accounting of small items when we are prepairing hire purchase trading account by debtor methop means we are not segregatting the profit or loss due to goods repossessed.
Actually there r two methods , In the first one we show revalued value of goods repossessed on the credit side of hp trading account and in another method we do not include the same in hp trading accout.
Actually I am very confused because in the first method when we are showing the value of repossessed good (revalued) on the credit side on hp trading account and passing a journal entry by Debiting "p&l a/c and crditing "instalments due a/c" then why the opening balance of "instalment due a/c" is not shown as opening balance of hp trading after the effect of the abve mentioned journal entry. While when we find out the closing balance of instalment due we always deduct the value of instalment due on repossessed goods.
kindly clarify
Regards,
CAclubindia
