Scribd Logo
Upload

Welcome to Scribd!

  • 18 views

    Hire Purchase

    Uploaded by

    MehneelParulekar
    1. The document discusses key concepts related to loan repayment including outstanding principal, interest calculation, and equal installments over multiple years. 2. It provides an example of a hire purchase transaction with calculations of principal payment, interest, and total installment over 5 years. 3. Accounting entries for a hire purchase transaction are outlined, with debits and credits recorded for the cash price, down payment, interest, and installments by the hire vendor and purchaser.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Hire Purchase

    Uploaded by

    MehneelParulekar
    18 views6 pages
    1. The document discusses key concepts related to loan repayment including outstanding principal, interest calculation, and equal installments over multiple years. 2. It provides an example of a hire purchase transaction with calculations of principal payment, interest, and total installment over 5 years. 3. Accounting entries for a hire purchase transaction are outlined, with debits and credits recorded for the cash price, down payment, interest, and installments by the hire vendor and purchaser.

    Original Description:

    Taxation IPCC hire purchase notes for CA exams

    Original Title

    HIRE PURCHASE

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. The document discusses key concepts related to loan repayment including outstanding principal, interest calculation, and equal installments over multiple years. 2. It provides an example of a hire purchase transaction with calculations of principal payment, interest, and total installment over 5 years. 3. Accounting entries for a hire purchase transaction are outlined, with debits and credits recorded for the cash price, down payment, interest, and installments by the hire vendor and purchaser.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    18 views6 pages

    Hire Purchase

    Uploaded by

    MehneelParulekar
    1. The document discusses key concepts related to loan repayment including outstanding principal, interest calculation, and equal installments over multiple years. 2. It provides an example of a hire purchase transaction with calculations of principal payment, interest, and total installment over 5 years. 3. Accounting entries for a hire purchase transaction are outlined, with debits and credits recorded for the cash price, down payment, interest, and installments by the hire vendor and purchaser.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 6

    Outstanding Principal Interest Installment

    Payment Payment

    lastyeaei clp.ee

    Impartantpaints
    µ InterestPrincipal
    is calculated on Outstanding Principal S not
    2 In the last year Outstanding Principal
    Principal Payment

    3 Equal Installments
    LOANy.AM
    Foigyeaas

    4 When installments are equal then Principal Payment is in ratio


    Eg tyr 2yr 3yr 4yr
    Interest I 1 iz t I 2544 12
    0 1.404928

    More Purchase System

    line vendor
    bline Purchaser

    Hire Purchase Price 1 Principal Internet Interest Interest Hire Purchase Price

    Cash Price Principal


    own Payment
    I
    ayment

    installments Principal Payment Interest

    interest

    Kinciple

    Sound

    OP PP Interest Installment

    81697.4407 25915.1279 4084.8721 30,000

    55782.31 27210.8843 2789.1157 30,000

    28571.428 28571.428 14 5714 30,000

    2 816972 83032 90,0

    1 1.05 1.1025
    µ

    Tunstall
    PP 70,000 HPP 227,099
    Op p Int
    13,0000 toooo 13,000 53,000

    90,000 40,000 9,000 49,000

    Sopoo 50,000 5000


    55,000

    E 1,57900

    90000 tx a

    Xt 0.19 53000

    Xtorllgooootx 53,000

    1 txt 9000 53,000

    1 IX 44,000
    OP PP Interest Installment

    own 1909000 450000


    l l sooooo
    l I 630
    i
    263000
    r
    ayment

    2790 o 3 00 85.0

    soooooo 100000
    i i 14,000 114,0
    i

    1 450,0002 1,120,002 5,6

    1 14kt 35,000 263000


    s s

    f
    vv
    ou
    I
    if
    V
    v
    Equal
    a
    c Easycppp simple a 7,3 f pp equal
    regiven
    basffoffstyllgynt
    DIE i IrrtInterpulation
    a z a cp p

    Cash Price 80,000


    Downpayment 21,622
    Interest look

    op Pp Interest Installment
    58,378 9562.2 5837.8 15,400

    48815.8 10518.42 4881.58 15,400

    3829738 11570.262 3829.738 15,400

    26727.118 12727.2882 2672.7118 15,400


    14000 14,000 1400 15,400

    TypeDgEExamp
    gig X purchased on hive purchase system DP 30,000 5
    installments of 60ooo each CP 3,00ooo
    i we have pp Mpp Cp
    solution
    solo 6 4
    080
    I 60,000 09708 0.9433 0.9615
    2 60,000 0.9425 0.8899 O 9245
    3 60,000 0.9151 On 8396 0.8889
    4 60,000 0.8804 0.7920 0.8548
    5 60,000 0.8626 0.7472 0.8219
    2,82 97096
    Now with trial and error we try to get to cpp

    2905
    i 3.97 96

    Accourite
    D Cashpoicemelhoet

    CashPrice MinePurchaser Dr CP
    Hinevendor CashPrice To Sales CP
    minevendor Dr Ant Bank Ale br Ant
    To Bank Amt To Hire Purchaser
    Aint
    Interest Atc Dr Minepurchaser Dr
    ToMinevendor To Interest
    wine vendorAC.in
    Installment
    BankMc br And
    Installment

    To Bank ToHire Purchaser installment

    µ oepoeaqioonja.hn
    NO Entry

    p or allonents
    These entries
    get repeated for the rue of installments

    Interest for the year

    organisation skill development

    team I

    Maths
    Accounting
    Economics
    Pune ac in

    You might also like