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Accounting for Hire Purchase System Interview Questions & Answers
Below we have listed all the Accounting for Hire Purchase System Interview Questions and answers. Feel free to comment on any Accounting for Hire Purchase System Interview Questions or answer by the comment feature available on the page.
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Hire-puchase system is a special system of purchase and sale of goods. Under this system purchaser pays the price of the goods in instalments. The instalments may be annual, six monthly, quarterly, monthly fortnightly etc. Under this system the goods are delivered to the purchaser at the time of agreement before the payment of instalments but the title on the goods is transferred after the payment of all installments as per the hire-purchase agreement.
Under Hire Purchase System method of accounting in the books of hire-purchaser, is done on the assumption that the ownership of the asset is also transferred to the purchaser with the delivery of goods.
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