What is hired purchasing?

What is hired purchasing?


Hire purchase is an agreement between the owner of goods, called Hiree and the user of the goods, called Hirer where the Hiree deliver the goods to the Hirer but the ownership of the goods remains with the Hiree. The Hirer makes the periodical payments of hire charges which are partly against the capital repayment and partly against the interest payable. After the full hire charges are paid by hirer, he gets an option of purchasing the asset and the ownership of the asset is transferred to the hirer. If the hirer fails to pay any installment, hiree can take the possession of the asset without refunding any installment paid earlier.
How is the accounting for lease transactions done?
Accounting for lease transactions are done on the following basis:…
How is the accounting for hire purchase transactions done?
Accounting for hire purchase transactions are done on the following basis:…
What are the different types of leases?
Financial lease, Operating lease, Sale and lease back is a financial transaction in which the lessee purchases…
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