I need to know when you buy a asset on credit and your monthly instalment

Advertise your Business Here

Refer this Site

Login | Sign Up


	SiteMap shows list of All Categories in this site.

Categories >> Accounting >> Accounting General

Audit Interview Questions

CompanyAffairs CS Interview Questions

Taxation Interview Questions

Accounting General Interview Questions

Accounting AllOther Interview Questions

Question

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.

Question Submitted By :: Mthi

I also faced this Question!!

Rank

Answer Posted By

Re: 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.

Answer
# 1

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

H.r. Sreepada Bhagi

Question	Asked @	Answers
Other Accounting General Interview Questions


what is the differance between bank od and bank occ?		1
What is Share Premium?	Capital-IQ	7
What is the difference between shares and debenture?		3
what is meaning off PLA IN EXCISE PART.		1
investment in share in which account		1
What is the Diffrence Between Expenses & Expenditure ??	Focus	3
what is the book keeping?		1
Give 15 examples for real and nominal accounts		1
Accounting golden rules?	ACS	3
what is the rate of purchasing computer goods from Gujarat, with C form, and what is the rate to sale it in Diu (Union Territory).	ASD-Lab	1
Inflation	Bank-Of-America	2
We had billed to a Customer Rs. 50000/- he paid 45000 to us n not paying balance 5000/- how and where to enter Rs. 5000/- Is it bad debt...		1

For more Accounting General Interview Questions Click Here


Copyright Policy \| Terms of Service \| Help \| Site Map 1 \| Articles \| Site Map \| Site Map \| Contact Us \|

Copyright © 2012 ALLInterview.com. All Rights Reserved.

ALLInterview.com :: Forum9.com :: KalAajKal.com