Question

With respect to hire purchase and installment sale

transactions, which of the following statement is incorrect?

A Under hire purchase system, hire purchaser will pay cost of purchased asset in installments

B Under hire purchase system, the ownership of the goods will be transferred by the hire vendor after payment of down payment (i.e. before first installment)

C Under installment system, ownership of the goods is transferred by owner on the date of delivery of goods

D Depreciation on hire purchased asset is claimed by hire purchaser

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Coal India Management Trainee

Coal India MT Legal

With respect to hire purchase and installment sale

Solution

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