Hire purchase system || Calculation Of Rate Of Interest By Product Method || Explanation & Concepts

Long Answer Type Questions SK Singh Books

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Long Answer Question - 28

🔴 When amounts of Instalments are equal but their Periods are not equal
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28. Aman purchased a Washing Machine on 1st April, 2021 from Naman Brothers on hire purchase

system, cash price of which was 22,000. Payment was to be made as to 5,000 on delivery, 5,000 after 2 months, 10,000 after another 4 months and 5,000 after 4 months of this. Calculate the amount of interest included in each instalment and prepare Washing Machine Account in the books of Aman for the year 2021-22, if he charges 20% depreciation on cash price. Aman closes the books on 31st March each year.

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* Hire Purchase System Playlist
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Hire purchase system meaning।hire purchase definition ।as per NEP 2020 । features of hire purchase। Content of agreement।Hire purchaser । Hire vendor and hire seller Calculation of interest । Cash price । Hire purchase price । Interest । Time period of payment of instalments । On what amount interest to ne calculated । Unpaid cash value । Rates । Annual interest । Half yearly interestDown payment । Down payment by hire purchasers।calculation of depreciation।। Fixed instalment method । Diminishing balance method in Hire purchase system ।rates of depreciation ।Accounting treatment under hire purchase sysytem । Asset accrual method ,In the books of hire purchaser ।journal entries in the books of hire purchaser under asset accrual method ।journal entry for down payment in asset accrual method ।entry for interest/ instalments/payments of instalments। charging of depreciation। Credit purchase method , journal entry in the books of hire purchase according to credit purchase method । Journal entry for asset purchased। Journal entry for interest and payment of instalments in credit purchase method। Journal entries in the books of hire vendor and hire seller । Journal entry for good sold , down payment , interest becoming due ।fir amount of instalments received in the books of hire vendor or seller । Ledger in the books of purchaser । Hire vendor's account । Interest account । Depreciation ac। Profit & loss ac । Machinery account । Plant ac । Motor car ac। truck ac । Calcultion of interest when interest are included । Calculation of interest when interest are not included । Hire vendor's account। Interest ac । Hire purchaser account । Hire vendor's account। Asset accrual method । Question and answers
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