What is treatment hire Installment not due while preparing financials?
How Installment not due is disclosed in the balance sheet in books of hire purchaser and seller?
Menu
Hire purchase
Replies (6)
For Hire Purchaser-Liability,For Hire Seller-Asset.
sorry I think there will be no effect in hire purchaser books.It will be recorded only in hire vendor books.I think that installment amount will be treated as closing stock in books of hire vendor.
| Originally posted by : Damisetty Saketh | ||
 |
sorry I think there will be no effect in hire purchaser books.It will be recorded only in hire vendor books.I think that installment amount will be treated as closing stock in books of hire vendor. |  |
Can you please explain why there will not be any treatment in hire purchaser book?
Because installment is not due,So I think there is No obligation of hire purchaser.(Due means didn't reached date of payment).
| Originally posted by : Damisetty Saketh | ||
|
Because installment is not due,So I think there is No obligation of hire purchaser.(Due means didn't reached date of payment). | |
So there will be no application of principle of prudence?
I think prudence concept doesn't require in this case because if installment is not paid automatically contract will be cancelled and hire vendor will take over asset and also hire purchaser too don't lose any thing because he too used the asset for some period.
Recent Topics :
- Private limited tax audit
- LTCG - SEC54
- Foreign remittance from our client for Co Working
- UDIN generation
- Reply plz guys
- Tax Deduction and Collection Account Number
- Where can students practice XAT PYQs effectively?
- Gst on Guest house 5% without ITC
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
Related Topics :
CAclubindia
