After putting posts in the rental book – the following accounts are opened in the recruiting station – Creditor and reservations accordingly. Note: To solve a digital problem, the amount of interest included in the different tranches is calculated separately before the entries are registered, as explained below. i) When handing over assets on the date of the agreement: you must now have experienced different aspects of accounting and accounting. You must have understood the concept of the dual input system. Today, books are held by all large companies and multinationals under dual entry systems. You know that turnover is the key factor in business success. A company`s profit always depends on the volume of sales. A large commercial building can generate its turnover in cash and credit. Credit sales are very important and crucial to the growth of the business. Proceeds from the sale of these sales are not collected immediately, but are deducted from outstanding balances under certain agreements such as the rental-sale system, the staggered payment system or recovery after a specified period. The rental-sale system is the safest and most effective tool for collecting revenue from a credit sale. (2) Include the five important elements of the lease.
If the seller has the resources and the legal right to sell the goods on credit (which in most countries usually depends on a licensing system), the seller and owner will be the same person. But most sellers prefer to receive a cash payment immediately. To do this, the seller transfers ownership of the goods to a financial company, usually at a reduced price, and it is that company that makes the goods and sells them to the buyer. This establishment of a third party complicates the transaction. Suppose the seller makes false claims about the quality and reliability of the goods that encourage the buyer to “buy”. In a conventional sales contract, the seller is liable to the buyer if these representations prove to be false. In this case, the seller issuing the representation is not the owner who sells the goods only after payment of all payments to the buyer. To combat this, some jurisdictions, including Ireland, place the seller and the financial house jointly liable for breaches of the sales contract. 18.
The tenant is required to pay the rental fee on a monthly basis, whether these machines and facilities work or remain inactive for lack of work or for some other reason. (Calculation of interest rate if interest rate is not indicated) A machine was sold on the rental-sale system on April 1, 2005. 10,000 aff. were paid on the spot and the rest was paid in four equal quarterly instalments of 22,000 each. The cash price of the machine was Rs 90,000. Find out the interest rate at each tranche. Since the property is not transferred until the end of the agreement, the lease-sale plans offer the creditor more protection than other methods of selling or leasing unsecured items.