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a) Through concentration banking.
b) Through lock-box system
johnson mwenjera answered the question on December 4, 2017 at 13:21
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Date posted: December 4, 2017. Answers (1)
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a) Write brief notes on
i) Hire purchase
ii) Credit sale
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b) Fiona Limited bought Motor Vehicle on hire purchase terms. The transactions involved
the following:
i) The cash price Sh.800,000
ii) Hire purchase interest 25%
iii) Deposit 20% of cash price
iv) 5 annual equal installments.
The purchase was effected on 1st January 2015.All payments were made. Depreciation is at a rate of 10% per annum on straight line.
Required:
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Hire purchase company account (4 marks)
Hire purchase interest account (3marks)
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Required:
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