Follow Our FB Page << >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...

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.

I need to know when you buy a asset on credit and your monthly instalment is $10000 in the books w..

Answer / 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

More Accounting General Interview Questions

What is the difference between cfa and csa?

0 Answers  

for an inter branch bank transfer (sbi to sbi)what entries should we pass?

3 Answers  

how to pass return cheque entry in tally erp 9 

1 Answers   College School Exams Tests,

what are the elements of the companay

0 Answers   HDFC,

example wrongly financial statments showing vat refund (under Advances) for the finanical year 08-09 , but present assement year after assement by cto given vat refund more than ledger showing balance then decided to every month set off vat payable to vat refund(advance) but more than recoverd compare with company and cto then what is the entry to be take.

0 Answers  

Any income which is earned in the financial year(2009-10) but received in the assessment year(2010-11) wil be taxable or not?

3 Answers  

What is difference between accounts and finance?

11 Answers   Genpact,

how i will pass the journal entry for the shipping charges

1 Answers  


0 Answers  

The following figures relate to the trading activities of M/s ABC Traders Ltd for the year ending 31 March 2004. Particulars Amount (Rs) Sales 5,20,000 Opening stock 76,250 Purchases 3,22,250 Closing stock 98,500 Sales return 20,000 Selling and Distribution Expenses Salaries 15,300 Advertising 4,700 Travelling 2,000 Administrative Expenses Salaries 27,000 Rent 2,700 Stationery 2,500 Depreciation 9,300 Other charges 16,500 Provision for tax 4,000 Non Operating Income Dividend on shares 9,000 Profit on sales of shares 3,000 Non Operating Expenses Loss on sale of fixed asset 4,000 You are required to: (i) Arrange the above figures in a form suitable for analysis. (ii) Show separately the following ratios. Net profit ratio Operating ratio Stock turnover ratio

1 Answers   Candico,

why we are considering the net profit as liable in balance sheet

5 Answers  

I have passed in SBI clerical exam 2009 , pls tell me what question will be asked for interview .pls mail it on my email id

0 Answers