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WorksheetsFA-II
Total questions: 15
Worksheet time: 8mins
Under hire purchase system buyer becomes the owner
On payment of down payment
After receipts of goods
On payment of last instalment
On payment of first instalment
Hire purchase price includes
Cash price and interest
Cash price and down payment
Down payment and interest
Total Price
The amount of interest is credited by the buyer to
Interest Account
Vendor Account
Asset Account
Depreciation Account
Down payment is the payment made
At the time of paying the first instalment
At the time of signing the agreement
At the time of paying the second instalment
At the time of paying the last instalment
When the hire purchaser makes default in paying the instalment the hire vendor has
The right to take repossession of the asset
No right to take repossession
The option to reposses the assets
He has to approach the court
When the hire purchaser makes default in paying the instalment the hire vendor has
The right to take repossession of the asset
No right to take repossession
The option to reposses the assets
He has to approach the court
Under hire purchase system the initial payment is known as
First instalment
Down payment
Purchase price
Hire charges
In the books of hire vendor the depreciation is charged
True
False
Any loss resulting on sale of repossessed goods can be recovered from hire purchaser
True
False
The hire purchase system is regulated by the Hire purchase Act----------------
1970
1971
1972
1973
The ownership of goods under hire purchase agreement belongs to the _____________
seller
purchaser
seller and purchaser
purchaser and financial institution
Under which of the following circumstances will the asset of hire purchase legally belong to the purchaser?
When the deposit is paid
When the hire purchase agreement is signed
When the first instalment is paid
When the final instalment is paid
HP Vendor was settled in full, choose the correct double entry for unpaid interest in HP Interest Suspense account.
Dr. HP Vendor
Cr. HP Interest Suspense
Dr. HP Interest
Cr. HP Interest Suspense
Dr. Profit and Loss
Cr. HP Interest Suspense
Dr. HP Interest Suspense RM 667
Cr. Bank RM 667
In hire purchase accounts, which of the following accounts have a debit balance?
I. HP Interest Suspense
II. HP Vendor
III. Assets
IV. Accumulated Depreciation
I,II
I,III
I,IV
II,III
If HP Interest Suspense account is not opened, what ledger entries should be made for the hire purchase interest at the end of a financial year?
Dr. HP Vendor
Cr. Cash
Dr. HP Vendor
Cr. HP Interest
Dr. HP Interest
Cr. Cash
Dr. HP Interest
Cr. HP Vendor
