What You Will Learn!
- Meaning of Hire Purchase System
- Characteristics Or Advantage Of Hire Purchase System
- Meaning of Installment Payment system
- Characteristics Or Advantage Of Installment Payment System
- Difference between Hire Purchase System and Instalment Payment System
- IMPORTANT TERMS
- When Interest is Included In Installment
- When interest is not included in installment
- When interest rate is not given
- Equal Installment Amount
- Equal Installment Amount
- Equal Installment Amount
- Equal Installment Amount
- Book of Hire Vendor
- Journal Entries In The Books Of Hire Vendor (Seller)
- Books of Hire Purchaser
- Repair Reserve A/c Or Maintenance Suspense A/c
- Hire Purchase System Exam questions
Description
Meaning of Hire Purchase System
Types Of Sales :
Cash sales
Credit sales
Hire purchase system
Installment payment system
Meaning of Higher Purchase system
Characteristics Or Advantage Of Hire Purchase System :
For middle class family.
Payment in “installment”.
Delivery at once.
Ownership not transferred.
Repair (seller) – In case of accident.
Repair (purchaser) – In case of accident (intentionally).
Non payment = Repossessed
No money refund.
"Ownership transferred” after last installment
Meaning of Installment Payment system
Characteristics Or Advantage Of Installment Payment System
For middle class family.
Payment in “installment”.
Delivery at once.
Ownership transfer at once.
Repair ( Purchaser) – In case of accident.
Repair ( Purchaser) – In case of accident (intentionally).
Non payment = do not repossessed but case in court (recovery of proceeding act 1985).
After payment of final installment = NOC
Difference between Hire Purchase System and Instalment Payment System
IMPORTANT TERMS :
Hire Purchaser
Hire Vendor
Cash price
Hire purchase price
Down payment
Installment Include interest
Installment without interest
When interest rate is not given :
1. Equal Installment Amount
2. Equal Installment Period
When cash price is not given :
1. Annuity method
2. Back Calculation Method
Algebraic method
Book of Hire Vendor
Journal Entries In The Books Of Hire Vendor (Seller)
Books of Hire Purchaser
Repair Reserve A/c Or Maintenance Suspense A/c
Hire Purchase System Exam questions
Meaning of Higher Purchase system :
Hire the sold goods because ownership is still pending with the seller. purchase system is the system which is having the following features :
(i) Under Hire Purchase system the purchaser shall make the payment of the assets in instalment not in lump-sum.
(ii) Ownership of the assets will be transfer to the purchaser after the payment of all the installment.
(iii) If the purchaser makes any default in payment of installment then the seller can repossessed.
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.
