tag:blogger.com,1999:blog-6729964597440123583.post1775994171219727136..comments2024-03-22T15:08:55.796+08:00Comments on Bookkeeping articles and resources: Treatment of hire purchase transactionsUnknownnoreply@blogger.comBlogger28125tag:blogger.com,1999:blog-6729964597440123583.post-44001749233967964792017-08-24T20:34:54.538+08:002017-08-24T20:34:54.538+08:00You are welcome Uhlenbrock CpaYou are welcome Uhlenbrock CpaDeltaTechhttps://www.blogger.com/profile/05215983284087310409noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-40018344244573265082017-08-24T20:15:55.612+08:002017-08-24T20:15:55.612+08:00I was searching for Book keeping articles and tax ...I was searching for Book keeping articles and <a href="http://www.uhlenbrockcpa.com" rel="nofollow">tax professionals in San Antonio </a> but got some great tips on how to diligently track your self-employed expenses.<br />Thanks for this article.Uhlenbrock CPAhttps://www.blogger.com/profile/01588541918963502759noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-92065238916045529912017-02-01T16:38:15.373+08:002017-02-01T16:38:15.373+08:00Good point.Thank you!Good point.Thank you!Anonymoushttps://www.blogger.com/profile/11361172936498154956noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-85124632822822682102017-02-01T16:34:04.916+08:002017-02-01T16:34:04.916+08:00Good point .Thank you!Good point .Thank you!Anonymoushttps://www.blogger.com/profile/11361172936498154956noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-58471346541115595262016-11-14T17:56:20.000+08:002016-11-14T17:56:20.000+08:001600 is in fact a deferred expense means you will ...1600 is in fact a deferred expense means you will charge to P&L for the year in 48 installments. The declining balance will appear on the Balance Sheet unless the final installment, Ovais Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-33880087284147448572016-07-14T08:23:21.038+08:002016-07-14T08:23:21.038+08:00In my case the item is interest free over 2 years ...In my case the item is interest free over 2 years (mobile phone). So can I just debit the asset register and credit the suppliers cost centre for full cost of the item? TIABeancounterhttps://www.blogger.com/profile/11360037976118918004noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-92109797725708310562016-03-06T11:07:57.777+08:002016-03-06T11:07:57.777+08:00Hi there,
I now got a confussion. How can HP inte...Hi there,<br /><br />I now got a confussion. How can HP interest be an asset? Can anybody clearify me please?<br /><br />Thank you in advance. Amarhttps://www.blogger.com/profile/15131516050768880172noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-64337871623819029662015-11-28T12:46:11.770+08:002015-11-28T12:46:11.770+08:00Thanks for the effort, keep up the good work Great...Thanks for the effort, keep up the good work Great work, the thoughts you state are truly awesome. I expect you will write several more posts. <a href="http://www.autoinstruments.com/links.htm" rel="nofollow">awesome cars</a><br />Anonymoushttps://www.blogger.com/profile/11718088637061523602noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-9192833249169599102015-05-17T22:43:31.096+08:002015-05-17T22:43:31.096+08:00Hi !.... How about GST? the installment amount inc...Hi !.... How about GST? the installment amount including GST and Term charges as HP interest .. How to split them .. first i split term charges as HPI from monthly installment payment .. after that i split GST.. if i dep assest on real amount excluding HPI and GSt ?Anonymoushttps://www.blogger.com/profile/15898452588488103650noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-81808257109833519002014-07-18T21:33:24.381+08:002014-07-18T21:33:24.381+08:00Hi Delta,
This has confused me for ages. Common s...Hi Delta,<br /><br />This has confused me for ages. Common sense tells me that one is liable to pay interest charged when signing a HP agreement. IE A liability. The 1,600.00 is not an asset. Obviously the 33.33 interest expense is a debit and to complete the double entry for that a credit must be made against something.<br /><br />Is it just for this administrative convenience that the HP Flashing Chancehttps://www.blogger.com/profile/07248212591202294268noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-3212942486339509442014-06-04T06:09:17.588+08:002014-06-04T06:09:17.588+08:00Hi Mezella
The interest balances off the amount o...Hi Mezella<br /><br />The interest balances off the amount owing to the hire purchase company.DeltaTechhttps://www.blogger.com/profile/05215983284087310409noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-9693827175929899302014-06-03T22:43:14.666+08:002014-06-03T22:43:14.666+08:00Hi all
In the first journal, Can you please expl...Hi all <br /><br />In the first journal, Can you please explain why we are taking up the whole interest amount of $1600 as an asset then Later write it off ( through HP interest expense)? Is there an accounting standard reference for this practice?<br /><br />Were this journal intended to recognise the whole value of the hire purchase asset and to balance it to the liability account?<br /><br />Anonymoushttps://www.blogger.com/profile/04540808373205476398noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-19511425269603853252014-04-23T15:56:03.018+08:002014-04-23T15:56:03.018+08:00Hi Tom
Interest should not form part of the cost ...Hi Tom<br /><br />Interest should not form part of the cost of the asset.<br /><br />Only the principal amount is capitalised and depreciated.DeltaTechhttps://www.blogger.com/profile/05215983284087310409noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-68206778683789711752014-04-23T10:05:04.343+08:002014-04-23T10:05:04.343+08:00I think you do not need to consider the interest e...I think you do not need to consider the interest entry at this stage as it is part of the cost. And the asset depreciated, including the interest portion.Anonymoushttps://www.blogger.com/profile/13353343219452416076noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-64370470761861417362013-09-02T13:10:50.399+08:002013-09-02T13:10:50.399+08:00How do you treat a high purchase transaction that ...How do you treat a high purchase transaction that has been financed fully from equityAnonymoushttps://www.blogger.com/profile/01182215262032628186noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-79577899827403683382013-08-23T17:39:37.703+08:002013-08-23T17:39:37.703+08:00If there is a GST including this Assets, How can w...If there is a GST including this Assets, How can we account thatAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-7381968681922918462013-07-30T14:40:20.371+08:002013-07-30T14:40:20.371+08:00this explanation is AWESOMEEE!!!
now i can practic...this explanation is AWESOMEEE!!!<br />now i can practice this to my Fixed Asset.<br />thx buddy for sharing this knowledge.Narcissushttps://www.blogger.com/profile/08366720365803156453noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-35411907248498774602012-10-31T01:30:13.878+08:002012-10-31T01:30:13.878+08:00I've read some just right stuff here. Definite...I've read some just right stuff here. Definitely worth bookmarking for revisiting. I surprise how much attempt you put to make such a wonderful informative web site.<br /><i>Feel free to visit my web site</i> - <b><a href="http://magicsubmitter411.com/federal-firearms-do-not-hold-off-getting-your-ffl-license/" rel="nofollow">ffl</a></b>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-58158757613838839372011-11-23T00:10:16.632+08:002011-11-23T00:10:16.632+08:00This is real kool stuff! The explanation above has...This is real kool stuff! The explanation above has really helped to clarify whats in my text.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-41699114640092330382011-10-12T19:00:06.170+08:002011-10-12T19:00:06.170+08:00cLoVer said...
Hi there..correct me if i'...cLoVer said...<br /><br /> Hi there..correct me if i'm wrong.i still confuse with the treatment of "Dr Hire Purchase Interest(Asset)". why should we dr HPI(Asset) as we didn't settle yet the payment. so HPI should be our liability.oh! i'm so confuse.anyone help me please<br /><br />ANSWER<br />if you want to use the liability account, you will need to post it as negative.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-13573542494490298542011-04-24T13:38:32.352+08:002011-04-24T13:38:32.352+08:00Hi there..correct me if i'm wrong.i still conf...Hi there..correct me if i'm wrong.i still confuse with the treatment of "Dr Hire Purchase Interest(Asset)". why should we dr HPI(Asset) as we didn't settle yet the payment. so HPI should be our liability.oh! i'm so confuse.anyone help me pleasecLoVerhttps://www.blogger.com/profile/09088479853775272969noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-1600551148920441062011-03-03T20:39:04.752+08:002011-03-03T20:39:04.752+08:00How to treat jouranal for early settlement of hire...How to treat jouranal for early settlement of hire purchase..Its impact to Fixed assets account & hire purchase account, loss / gain of fixed assetsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-54626750127727494402010-08-20T08:43:41.265+08:002010-08-20T08:43:41.265+08:00Hire purchase accounts do not attract depreciation...Hire purchase accounts do not attract depreciation.<br /><br />However, if you mean depreciation on the fixed asset acquired through hire purchase, then the journal for depreciation would be:<br /><br />Debit Depreciation Account<br />Credit Accumulated Depreciation Account.DeltaTechhttps://www.blogger.com/profile/05215983284087310409noreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-90967281328879536092010-08-17T22:44:06.332+08:002010-08-17T22:44:06.332+08:00You're right, in fact.
Can you post the doble...You're right, in fact.<br /><br />Can you post the doble entry for the depreciation for this example?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6729964597440123583.post-46120554443812572932010-08-08T17:46:38.460+08:002010-08-08T17:46:38.460+08:00Hi Stayphas
If you look at your first entry, you ...Hi Stayphas<br /><br />If you look at your first entry, you will realise that it is not balanced:<br /><br />Cr Bank 241.66<br />Dr Hire Purch Co 208.33 <br /><br />But, I can understand your confusion.<br /><br />First off, we need to reduce the amount owing to the hire purchase company. This amount would include the principal and interest (208.33 + 33.33).<br /><br />The second DeltaTechhttps://www.blogger.com/profile/05215983284087310409noreply@blogger.com