HIRE PURCHASE SYSTEM

Cash prices of asset+ interest

• Contract

• Markert

• After depreciation

• Purchase

In hire purchase system maintenance suspense account is maintained by _____

• Purchaser

• Seller

• Both

• None of the above

Under higher purchase system the amount of interest is charged to

• Asset account

• Purchaser account

• seller account

• P&L account

At the end of the year the intrest paid and depreciation charged are transferred to the ____account

• P&l

• Seller

• Asset

• Purchaser

Under installment purchase method in the book of hirer (purchaser)asset account will be

• Debited with cash prices

• Debited with cash prices and interest

• Debited with cash prices and credited with intrest

• None of the above

Which is of the following statements is correct

• In higher purchase system the interest is calculated on each installment on the outstanding cash price of installment

• In higher purchase system the interest is calculated on Each instalment on contract price

• In higher purchase system the interest is calculated on each installment on the outstanding contract price of installment

• In higher purchase system the interest is calculated on Each instalment of opening balance of asset

The difference between Total amount payable and cash prices is

• Interest

• Down payment

• Depreciation

• Purchase price

In which of the following method of sale if the purchaser cannot be the amount of installment the vendor can get the asset can get the asset as return back

• Hire purchase system

• Instalment system

• Cash method

• Sale or return based sale

Bye deducting cash price from the contract price of assets the difference of the amount is called

• Intrest

• Original price

• Sale price

• Installment

Which of the following is not included in the hire purchase agreement

• Method for depreciation

• Installment amnt

• Hire purchase price

• N.O.A