国际会计英语 Chapter 8.pptVIP

Chapter 8 Hire purchase Three types of Sale Cash sale Credit sale Sale on hire purchase agreement. Hire purchase considerations Cash price Hire purchase price Interest element Accounting for the Hire Purchase Element Sales at cash price should be recognized at the date of delivery. Interest element in hire purchase price should be apportioned during the hire purchase period. Five Methods for the Apportionment Straight-line method Reducing balance method Sum of the digits method In the proportion to cash received Actuarial method Definition of Hire Purchase A hire purchase contract is a cont