Regarding reversing loading in hire purchase

Let us first be clear about the term LOADING.. i.e nothin but actually the PROFIT element... therefore now if you the prudence principle,

take these two situations : When will you recognise profit on these two??

1. on actual sale to customers? or on

2. simple stock transfer??

Obviously on actual sale only.. therfore Instalments Due A/c actually like a sales account.. by posting an entry in HP stock a/c you are doing nothing but a mere stock transfer to the hire purchaser. therefore you cannot claim profit for that portion for which instalments were not yet due.. its like your stock lying on him. so what will you do in norml final accounts?

you will book stock at cost only right?? likewise here also you are removing the loading element and bringin it back to the cost level itself.. whereas if the instalment  is due, its like the sale is actually made.. so no need to remove the loading elemen therby claiming the profit..