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Hire Purchase Accounting Problems And Solutions
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Question 3 A $2000 Lounge Suite Was Sold Under A Hire Purchase Agreement. A Deposit Of $200 Was Made. The Balance And Interest Was Then Paid Off In Equal Monthly Instalments Of $68 Over 3 Years. 3th, 2024
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HIRE PURCHASE AND INSTALLMENT SALE TRANSACTIONS
The Method Of Accounting For Hire Purchase Transactions Depends On The Value Of Sales. If The Goods Have Substantial Sales Value The Accounting Methods Adapted May Be (i) Cash Price Method Or (ii) Interest Suspense Method. Hire Purchase Accounting Methods For Goods Of Small Sales Value May Be (i) Debtors Method 3th, 2024
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