I need to know when you buy a asset on credit and your
monthly instalment is $10000 in the books where and how do
you record the outstanding liability the interest and the
capital instalments.Secondly the deposit that you receive
which you should still send back to the tenat where in the
books do you record for entry and the contra entry.
- 1 Answers
- 3136 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
When an asset is bought on hire purchase or installment and
it becomes the asset of the buying enterprise, Debit the
asset A/c and Credit the Supplier's (Creditor) A/c. Whenever
installment is paid, Debit the principal portion to
Supplier's A/c and interest portion to Interest Charges A/c
or any other a/c suitably named under the head Finance
Expenses or Financial Charges.
From the 2nd part I assume that you want to know how the
Security Deposit received from the tenant needs to be
accounted in the books of the landlord.
On receipt of deposit money, Credit Security Deposit
Received A/c (Under Current Liabilities & Provisions head)
and Debit Bank/Cash A/c.
When the money is refunded on termination of the lease, pass
reverse entry.
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
What is the revenue recognition principle?
Please advise how to calculate net asset....
IS THERE ANY DIFFERENCE BETWEEN PAID UP CAPITAL AND PAID IN CAPITAL?
what is wct ? who take its benefit? e.g. we are works contractor, we are liable to take its benefit or not..
What is tally accounting?
WHAT IS OPERATING CYCLE?
What is recording damage inventory in books of account?
a cc. has balance Rs. 8,40,000 at the credit of profit and loss a/c this balance is used for redemption of debentures what will be the entry
What is the TDS rate in Maharastra, Tamil Nadu, Karnakata,Odisha & West Bengal. What is about Profession Tax.
under which accounting rule prepaid salary?
How time sheets are maintained?
Explain have you ever prepared mis reports and what are these?
what is journal entries for Vehicle loan settled with bank after Sale of the vehicle on profit or loss in case the party paid check direct to Bank .......???
Tell me what do we mean by purchase return in accounting?
IF SALES BILL PREPARED BY CHARGING CST 4 WHEN THERE IS CST 4 TO BE CHARGED. BUT NOT 2010-2011 CST IS 2%. NOW WE HAVE TO PREPARED CREDIT NOTE AGAINST THAT BILLS WHICH CHARGED CST4 AT THAT TIME. THEN I HAVE TO ASK THAT HOW TO MAKE CREDIT NOTE NOW I.E 2010-2011 BY CHARGING 4% OR 2% ?
