PagelWork

HIRE PORCHASE
Tubo types uchase pament- dump sum and installment
HiRe veDdo Hüe Aset Hlùo Puuchasa
Cash Puce
Full paymen- aoount to be paid by
DouoD payment
bue on
oubiahi puuchase
Jepant o casb pice paid
immediately OD getinA possesion
sianing aguument
usalways inteust a omes Ona in a li|ehime
Incase buyulails -o pa insialkmenl, seloz has tbe uight t o
aimbuseha'geoda
Uotil last installment uis mado, legal
ouonusbip is uoitb gell»

J o Hbe books o Hue Puchasen Casb Puice G

()Jdbeo bye usillacoad asset 2 antest=1
On Possession_an Rucbase Hu Pucbase 6
Lib at oh at Nalue Down Paymenk =QL
Casb Puice
Hluepuichbase us dbe berglicial ouwn, he cao ul3ale insuie
0.set, cbae dapuuciation

Tun Metbods
qAccouriling io Hbe books o Hu Purhase
0 Cash Puue mdbod J d e s tsuspense method.

JouFNALENTRY IN THe BOOKS OF HIRE PURCHASER

CASH PRICE METHOD
ÒAsset Pucbase
Asset Alc XX
To Hie Vendloa Ale XX

alwa at casb puita)

 PageWork

() Doun payment paid.

Hue Ven dou Alc Da XX
To Bank Nc 31|12/
Cti) Joteust due
Joteest Ac D XX

To Hie Vedos Ale XX

(i) Install mont paid

Hu Vendoa Ale Da XX
To Bank Ac XX

(v) Depueiation
Depueciatioo Ale De XX
To Asset Ac XX 32]23
v) Taans
XX
PGL A D
To loteus Ae Xx
ToDepecLrhion A XX

01 In Abe books of Ms HP
JOORNA L ENTRIES
Nethed.
DATE PARTICULARS I D(7)
1i21 Pick.upvan Alc D 1,00,000
To Ms FM Ale 1,00,000
Ms FMAlc Di 40,000 Darte
T Cank Ale 40,000 ol
3112Int esost suspense Ale Da 1,200 a112
Ioteusl alNe To Ms TmAle (3600t 2400 J,200
TInteest- 1200) D 3,600
SUspenelc MIS FM Alc
To Bank Alc 3,600
Depuciation Ale D 0,000
To pick up Nan Ale 19.000

PLc D 13600 ala=

 Pogellork

To Inteust Ale 3600

To Depuaahion Ae 10,000
sula/ Inteust le D 24400
To Int est Sus pense. Ac
Ms m Ale De 2400
Ta Bank Ale
Depnciatioo Ale D 1b,0OO
lo pick up an Ac

P&L Alc D 400

lo depuc ation Ac
To Intest Ale 400
3u12/23 Intust Alc Da 1200
Tolnteust suspenseAle 1200
Depuciahon Ale De lo,000
T Pickupxan A 10,000
Ms FM Alc 100
T Bank Ae
PLAle Da 1, 200
To Intezs Ale ,200
lo Depuciation Ae lo,oco

Ms M AC
Date Partilars Dat Pauticulau

ou Banh Ale 4000021 By pichupan 1,09.000

3112 Banh Ae 3600 By inteLst suspe 1200

lo Balance cld 43600

,012000
01,200
alu22 Bank Ac 43600
4CO By balarca b/o
lo balance. cld
13600 42600
Bliala To Banh Alc 00 balanca.cld IAOO
 Pogellork

SE AC ( ) INTER
INTeREST SUSPEN
DATE PARTICULARS DATE PARTICULARS

1200 3112 By lntensst se3 pense 3600

oiDTa MJs FM
By bolana clo 3600
1200 100
OloBy balanoeld3600 31 12BIntewst Ale
By bolance cla
3600
olloTo Bakna bld 38la003112 Byloteust Ale 1200
QLCashPL
INTEREST Alc
PARDCOLARS DATE PARTICULARS
DATE DATE
3112 nteust Aee3u1 By PgAle 3600

Suspense Alc 3600

3600 3600
31 12intaust suspense400 31 By P8 L Ne d00
00 2400
3 12 Intuut suspense labo 312a By P1 Ale 100 311
|la0 0

EXTRACT OF BALANCE SHEET AS AT 31-12-0).

LIABIL)TIES ASSET

Ms M 43600 Pickup van 90,000

Jntenst suspense (360D) 40,000 31

BALANCE SHEET AS A3 311a| 003

Ms FM Pickup va0 80,pO0
Jnteust suspense (l200)20,006
31
BALANE SHEET AS AT 23
Pick p van T0,000
ogelWork
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(INTEREST SUSPENSE METHOD

Sn the boaks o hi puchase.
3600 () Asse'Intuust suspense
3600 Unt eust susp enseAc XX
100 lo hie ven da Alc
XX
CTotal JntBeust)
100 () Jnteust due
600 Intust Ale D XX_
Ta Inleust suspense Ale Xx

Cash Putt meihocd

S JOURNAL
3600 DATE PARTICULARS DR) Ca
il Pick up YanAlc D 1,0oc0o
3600 T Ms EM Ac
oulo Ms EM Ak Do 40000
2400 To Bank Ale 40,000
l00 3112 teust Ale Da 3,600
200 lb Ms ¥ Ale 3600
3u1a Ms EM Ale Da 3600
2-0 To Bank Alc 3600
3112 Pepuciatbo Alc D 1,c00
90,000 T% pick up Van Al lo,000
3un. 1Ale 13,600
lo dapuciakion Ale
00 Tidteust Ale 36O
80,000 Ol dntensi Ae Da 400
To Ms FM Alc 400
31
li. Ms FM Alc Da
lo Bank Ac
10,000
 Pagellork

3112. Depsci atuon Ne Jo000

To MS TM A¢
312. PA D
12,t00 l0,000
To depuciation Alc
To Jht eust e l0,000
Q003
9112 Jnteust ae D 1ao
a,400
To Ms M Ale
3112 Ms FM Ae D la00 200
To Bank A]e
00
3u12Depaciat ion Ac D lo,o00
To pickup van Ale
3112 P Alc Da
l0,000
To dapuiation Alc
11,200
Jo idteat Ak- lo,o00
EXIRAC OF BALANCE SHEET AS AT 312lo
LIABILITeS ASSET
MSFM 40,00O Pickup van 90,000 C

BlS 31120
MSEM 0,000 Pick.upyan 8o,000
3112l03
MsEM1 Hckup vao 10,000
JN THE BOOks OF HIRE
YENDOR
JOURNAL ENTRY
SALeS METHHOD
6zet sold. Sales
Hue puchasea Ac Da
To HP Sal Ac
Ccasb puico)
 PogeWork

.DouD payment usceuivecl.

Bank Aale D
lo lue puucbasex
Alc
3 Jnteust eluu..
Hùe puuchase Ale De
TaJnt estAle
Installmaat ucei ved
Bank Ale Da
To luepuuch.aser Alc
5
TLansles
(i) HP Sales.
HP Sales A Da
To Tadiog Ale
) Snteust
JntwstAlc De
To PL_A

01 Saleamethod.
INTHE BOOKS OF Ms FM1
JOURNAL
DATE PARTICULARS D a)
00
Ollol Ms HP Alc Da 1,00,000
To'Sales Ale 1,o.0ddO
oulo. Bak Ale Da 40,000
To Ms HPAe 40000
3112Ms HP Ale De 3600
To JneesE Ale 3600
3112 Bank Alc De 3600
To Ms tHP AJ 3600
3112HP Sales Al Da o0,o00
To Tading Als ,O0,00b
 gellork

3n12 Jntaust Ale D 3600

To PL Ae
Ms HP Aale Dr 400
3600
To Inteust Ac
o1lo Banok ale D 100
a00
lo Ms HP Ac
3112 nteust Ale 2400
406
003
To P8Ae
3/12Ms HP Ac D 1R00
To lotet Ale_
00
3uh2Bank ale DR
l20D
To Ms Hp Al l00
3112 Jnteust Ale Da 1a00
P Al 1A00

Ms HP Ac
DATE PARTICULARS 'DATE PARTICULARS
o1loilTo HP Sales Ae i,0o.ooola Banh Alc +0,00
3112]1 b Joteust Ac 3600 2112 Bonk Alc Q3600
3112ByBaloncecld 40,00
L,03600 L03 60
ouloT Balanca bjd tgob 311a By bank A]
To lateuut Nt 400 By Balao« cld 20,00
4400
ollou3ToBalana bJda9,0031l12/3| By bank Ale O0-
To Inteut ale l200
l00

HP Sales Ac

3112To Tading Ae ,0,000loi)ou Ms HP Ae 090

,00,c00
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3600
INTEREST AC

400
3600 DATE PARTICOLARS DATE PARTICULARS
31 To PG L Alc 3600 1i21 Ms HP Al 3600
400 31l12/ To PgL AJOD 31 Ms HP Alc 40D
400
alala To P&LAle aoo 31al3 M HP A 100
406 EXTRACT OF BALANCE SHEET AS AT 31|13|0
HOO LIABILIIES ASSET
100
Ms HP 40,000
B3 312l0
l200
Ms HP
l00 Bs31al2laa..
Ja00

IN THE B0O KS OF HIRE veNDOR

JNTEReST SUSPENe METHOD
CULARS 3 Jnteust suspense.
40,000 Hepuucb.aser Ac Ne (Total Iteust)
Q3600 To Jnt est &uspense Ale
cocld 40,000 A JoteLst due
03600 Soteust SuspeoseAle
k AJ To Jotewat Alc
ana cld 20,000
400 ON THE BOOKS OE MIS EM

DATE PARTICULARS
00
D CaC
l00 oulol Ms_HP Ale D 00,000
To HP Soles Alc
Bank Ale De Ao,000
HP Al 1,00,000 ToMs HP_ Alc
Ms HPAe D 1200
 PagelUork

To Jnleust Suspense A
3112Jotestsuspense Ac Da 3600 1200 90p3
oio T
To Joteusi Al¢
312 Baok Alc Da 3600
3600
To Ms HP AJc
3112 HP Sales Alc 3600 DATE
To Thading A
D100,000
blali To
JoteestAJ D
3600
1,00,000 To
00 To PgLA}e
Bilav2 Joteust Suspeose Alc De
3600 311aTo
loIntaLat Ae To
Bank Ac 400
Ms HP Ae 3il1 T
HO0
To PaAla
0p3 HO0 DATE
3112oteuust Suupense Ale l00 00
To Sot eB Ale 00 2002
Bank Alc Do 100 &003
To Ms HPAe ala00
doteust Alc Da 00
To Pg AJe
MIs HP AJc
DATE PARTICULARS
DATE PARTICULA RS
Jo HP Sales
oilo To Ini euust
Io,o0o oilalBaok AJe A0,000
Suspense 1200312 BankAle a3600
3112 Bal. eld 3600
00 L,o100 01200
ouo blc bld A3600 B12 Baok Alc
blc ble Q100
H3600 43600
 Pageiork

O03
Oio To Bal bld 0031|13 By Bank Alc

INTE REST SUSPeNSE AJc

DATE PARNCOLARS DATe PARTI CLARS

bilal To lotest AJe 3600O011 M HP AJ_ 1a00

ToCa cld 3600
1a00 100
311a To lntwst Ale HOO ailo Balbld 3600
To Bal cld la00
3600 003 3600
B11a T loteestAle 1200 oli y Pal bld 1a00

INTEREST AJC
DATE PARICUHARS DATe PARNCOLARS
00
00To
Q00
P1A 3600 3l1
Q00a
B loteestSuspense Ak 3600
T PLAJe 312 BIndeus Suspeose AH00
003
1a00. 3uli2 Bu Lotewst Suspensealc a0o
&003
&003ToP8 AJ-
eXTRACT OF BAKANGE SHEET As AT 3I12/0.
LIABILIT18S ASSET

Ms HP 13600
FIoteust Sus B400 40.00O
BS 311202
Ms HP lR00
lotesESus (lo00 0000
BS 31a0
 ageWork

REPO SS ESSION

Ip case bua (hiue puchaa) makas duault un

paumnt IN THE
unsialment, then huLvenclos.can go posge33ib. hu-
OD u
IRL a u
typos posions
hio
- (ompletr uepos ession paxtialJposseAion. eotz

COMPLETE REPOSsESSION
iocc
INTHE B0OKS OE HIREPURCHASER
a l l noimal entuies dik inteut dapctoition etc ae Pip
given
Prapi payment ol installment
Thualh, thúe vendo Alc tis closed by iansleuing balaocing - incG
guto asset AlC P CE
alr closing this vendor Ale, assek
Actis closed and any
dileunceuo
b. assetAle is duansleuud o PL Ae a
PADit on suusndeigrloss a Sulendu
Asset Haivendor PLA0)
P&L(30
J,00.000 1,00,000 10,000D 30,000 1O

40,000) DP to,000
D 30,000 D
-60,000+ 31,600 De
3600(IND 51600 Da 57600 DA
63600 6Qustu
olep 10. C10,000) C23600)_CIDS DAT
90,000 40000 40,000 A00 2016
(10,000) O104
HOOCN)
80,000 31|3
1O0CPayablo) 31
31600-Loss
n e l impact umains Same 3113
a t complete uepobsesion in ibe baoa_ohn pulchas
thue aAset Ac03 l as thue y endo Alc_cease n-
 Pagework

IN THE B0OKS OF HilRE VENDOR

-thuu als0 ue pass al moumal entusezupt uceiving_insiallmeni
00 uepassession uu close huw puchasea and uans balance un
hiiepuucb aser ale o Gjooda auposseshed alcby paingollDuing-
enty o100dsuupossessedAe Da
To huepuch aser Ac
incase dhiie vendo ds iouling s0me uspab 0i uCondiioning
expeases bao olloniog enly us pamed.
oqaods uap.ossessedAle
T Bank Ak
incasethe assel is sold by hiuvendas dbeoollbuing enobyis
passed: Cash Badh Ale
lonoodsuapossess.ed i e
ollaina enty us pased io case opoit on Sale
Gyoada epasesaed Al
T Taoiton sals o apassessed good(pgL) Ac
1OCOsea loss 0D Sals:
oss an sals odipossess.ed gaoch Ale Ra
loGioods uepossessed Dc

6.GLstion6 IN THE BOOKS OFE CSEIe LTD Chue puch ae)

RAPID 8N GtINEERING AJe
DATE PAR DATE PAR
016 O16
0llp To Bank Alc 000 otloABmachioeAc 31360
3113 ToBanhAlc 9o00 3113 Byintees+ Alc
213 To Bal cld 1559% (dd360X10) 36
33596 33596
31]3.ToSma.china AlcT156 ByBal bld I5596,
313 By loteust e 1560
11156 1156
 gelWork

MACHINE Ac
DATe PAR DATe PAR
0l6
Ol04 To uapid erg Ale31260 31 3 By depuuiatio Ale 5.
By Bad cld DATE
0XI
31360 o10A o
011
O1oTo Bal bld 8h 31860 O1|1oTo
apdationAk
a3By aafid eng All156 Ollo T
31s By loss 0D suLu nda
84
CP&LAN 8446
003
INTHe OllD lo
BOOKS OF RAPID ENG4. NORKS
CSFIE LTD
DATE PARTICULARS DATE PARTICULARS
JO16 DATE
2016
oila4To HP Sales Alc31360 Bank Ac 9000 3016 lo
31l3 T loleust AleRA631s|1 BankAlc 000
Balcd.. 15596
3359%
oll o Bal bld 556 2018. 3516
By goods uupose d 11156
3u
ald To Intaust ale 1560 Alc

GH00DS RE POSS ESSED A|C DATE

DATE PARTICDLARS DATE PARTICULARS. To
313ToCSEIE A I7156 313
2018
By Bank Ac 0,000
313To Bank Ac 000
313To
ToRuot on sala844
& po sessedO0,0co
grods 00
CPL 0,OC0
306lo
o0,00
311 To
ork
PageWork*

TRAC TOR AJ¢

5
3136. DATE PARTICULARS DATE PARTICULARS
oOxl 00
oilo4ToHe_Co Alc[A) 1400 31 Ey Bal cld A l4000
31360 Ol1oTo HP Co AJelB) 19000.| B 19000 33060
8 33000 C0
33000
1156 o o1To Bal bla 33.000 3016 B dispasal e_diacto 19000
aul1a By Bal cld A 4000

846 33000 33000

oioi lo Bal bld H000

DISPOSAL OF TRACTOR AJC

DATE PAR DATE PAR

9000 oTodaacto ale19000 82B Puv.dodep Al 850

9000 io.01 By Bank Alc ltosuon) 5000
15596 tofo1 Bloss on dispos.al
33516 CPE) 150
156.
f9000 19000

PROVISION FOR DEPRECIATION

DATE PAR DATE PAR

STo Dal cld 3050: a11aBudepuciation Ale_

A-14000 X30/x 9/13 I00
20,000
B-19000Xa0/x3/1R 50
3050
Q000
3050 00
3o6lodispas.al of 850 1lolBy Bal bld
0,000 dhocto Ae(B) A I00
312ToBalcld 4900 B 950 3050
Q0
206 By dap Ac B 1900
3112 A 280O.4100o
T50 1150
 ageWork

PARTIAL REPOSSE SSION

Gpeneaally nmou lhan Iunt is sold ond on cdelaul byihe h
peunch ae pauing Go installmenl inskead q possessing.all.
hue vendi uupossesses only ew unils against instalent uit
Agued valus of uupossess ed gocda. . Re
locase q pautia uspossessionwe nand-to calaslau aquud val....
utpossessed gooda. Greneually eitho gued valuu 01 he me the
o caleulalina aguud valuu us g-ven in 1he quastionDo
Inamaka 3
given on aquid value o poss.essed unils 1he amounPol
insalmenl taken aa gtuad valuo

1Jathe books o hiuepuchasa

Just lika complete uopassession_all nouma) ealui ike inteat
depciation elé üs pased in ibe books ol hùs puuchase Hen
nadound book valua oasselsatposseised rst and Hheo
dlowinq entis passedo dapossession.

HuLvend Alc D Logued alun

Loss on SuLend Alc cguo value is less 1hao book valut
loAssek Ae ( BV)°d
To Punlt oo SALendu Alc ( AV is ma dban Bv) DAT&

Note:
L Hee altu pautial uspossession book o HP
to
in we wil ontinue
have häsassel as'well a
Hv Alc
.hotbing is gven io quuation as to o bow much peuiod ihe
Alc bbe made lbm ua pupau actaun D
ill dati a
uepossesibn oo and not alti Ahal.

2 In the books ol huus vendo

Reposs essio
 Pogework

ess
Gyood uepossed Ale Da (hgsad value)
To Hu pu chasea Ac

Repaus or ueconcition inq exp:

Grooads upossesedAJe D
R
T Bank A

3 Sale o upossecsed gooda.

Bank A D
lo goods_upossessed Ale

4 Paojitloss on sale
Goods upossessed_Alc De
T olk op sale ol uapassesied goeda{ PgL
Ci)loss
Loss on Sale oepoisessed qood1 Ale_la
Ta joods uuposdessedA l

loHhe books of x ltd.

DATE PAR

Milk vaos Al (ax 15000) D A5,000|

To Supe motaus A S,OOO
Supamotaus Al 45,000
To Bank Al ts,cco
loles Ale (1,80, 000x11) D 16,00
TSupemotous Ac
Sup umoto Alc 16,a00
lo Bank Ale (60,000 t l6200) 16, 0 0
Depuciaton Ac 4S000
milk van.
IDSupa 1oTaL
 agellWork

P8L A D 6lo00
To depuuatim Ac
To Jnlui 4SCLO
Jndast Ale (1,20,000x 11)
b Supumotaus Ae
Depuati atioo Asl2I-1.80L)X0Z.) D 36,0O0 16,800
Tomilkvan Al
36OL
NN
Book value o mlk yan
Cos(15oOX ) 5,000
AguudRe.possessedyolua
t o milk van
dap0/ 30,000) Cost 150,000
dep @3o/ scco
dep 0/ HOCO) 05,0C0
6,000 dep C 30/ (31,sa0)
d25,000
Ch5,000) p2 ,500 350
loss on Stendu
,BD,000
+(16,àOuSnt Supemokas Ale R 13500
16,200[Poid) loss on Sendu A
S00
1,0,000 To milk vao 0c
51300
4000
Supamotous Dl.1.81- 60k)
=
\,20L-13500
G45AA
1350 0) T ToConk 46500-1O8OO
51300
6130D PGL Al 69300
lo dhpuaiathi on Ac 36000
To lnteut Af 1OsO0
o loss.on Suultndu d9500
 PogeWork

IN THE B0OK S OF X TRANSPORT TD

DeLHL 00 TORS Alc

016
To Bank 3g000 oilo1 By sset De 1,50,000
312 To Bank 50,&OO 311 By lnteusk A
(,aq.0co/atlosou) (i,a0,00DX3/)
TaBal eld 30,000
6080D 160800
aOH
l Bs Bal cld 90,060
3112 By InleiiE 1,00

* Booh Yalue of diuck * gmdupnsessed value

Cos 50,00xa) 1a0,000 Cas(5okxa) 10m.0co
less: dop @ 20, (a0,00) dap 30. 30,000
80,000 To,cOO
less dap @ 30/ 6,0002 -dep 80 O00
GAOOO lo880n Siende 49000
5000
Tempo
DebimotÓL Alc D49000
l033 On Suend Ae 1SOO0
lo Delhð matns AJe 640002
011
49000 y Bal bld 80,000
1200
To Bal eld 3800 By Inteut Ae
80,000X)

8100 81900
31 To Bank 41638 alai & Bal bld 383C0
B112 Bq_Inteust t38
38a00 XIZ)
4L638 AL63S-
 TEMPO Al
1,50,000 312 By
deputiaion 30,000 0
ija lo delhi mataas
l1,50,o00X201)
OT=
(50,000x3) 0000
By Bal cd

dopsaation 4000
Oula lo Bal bjd 1,30,0d03ul2 By
306
Bydelbi mctos 49TO
Blosson Sulende

X
2Bydepusciation 6400
3,3000x0Z)
Bybalcld 95,600

N THE BOOKS OF HIRE PURCHASER

TRUCK ANc 201
201 011
hue vendo 350,000o thuck 50S
(X500000) al2
3tH12 BHote tc 01

06 By dapuciatiop 30l-
(3,s0,000X30/) 0,000
306 b hùs vendo to500
ByLoss on Suundsu 19500
By Balcld 1,6Q000L
3,50,000 3,50,000
Book Valuo 0
Cost(3x59.o00) -154060
Repassessed yalue 30
TalaCosh pament
lessdep@201 (30,o00) H0000+ 62,000) ,33,000
1,20,0O0 Total Inteest TO00)
less dap @ab.-AHCCO)_ Cash paynent 1,6,O00

Casb
payrogpi for (,26000x3)
5400O
(-Rs7) (13500
 PageWork

HIRe vENDOR A]c

2011
To Bank 1q00 Ou yuu ck 2,50.000

12 o 1Bank 63,000 3/|2 Irdet Ale

,30,000-S)+ To0s Cas0,caOx57,X G/1a)
019
30l By ntut Al 5,600
306 Taduuck 10500 Co,a4,co0X57.xa)
T Baleld 189100
3,626OO 36600

hue yeod orAle 05 00

loss On Suind e Al 19500
lo duck Ale L , ,00O
InHbe books of Hiu Yendoa
BANE RJeE Alc

ToHPTo HP Sales 3,5000 Bu Bank 10,000

al12 lo Inteuat 10003112 Bu Baok 620C0

30l6 To lokeat 5,6C030|6 By cods uapossed 10500

ByBal cld 189100

3, 6600 3,66O

GHOODS RE POSSESsED Ale

0l To Banuie 30]G y Bonk 40000
Co A0500 By loss oD
lo Bank Sale o uposiesed
GicodP&LA

4ISOO 41500
 PogeWork

CALCULATION OF CASH PRICE

INSTAIMENT IITEReSTCASH PRICE CLOSIN ASH
SLNO:OP Ols PAD
3L NO CASH PRICE
60000
oDP popO 40,000
60000 236c0 2600 0,006 10c00
40000a400 A00
,c00 00la0o o,cco NIL

,O13cd| 1a00| ),0000

Opa ols Casb pue dnstallment AmB +Clasing ols Caunfu

100
R Racto q intuut pes annu
K Na:oinstaillment puannun

39 installmenl à00t0 Xx 100=0,OOO

0o+(6/D_
Ddinstall.ment arHOO+0000 x 100 - 40000
oo+6/)
S installnent 2600+O640000 X100 =6a,000
0 installment Sntusk will_be mil