When an asset is acquired on hire purchase system, the asset account is debited with _______ of the assets in the books of the hire purchaser.
A)hire purchase price
B)cash price
C)instalment price
D)none of these

Question

Quizplus · Accepted Answer

When an asset is acquired on a hire purchase system, the asset account is debited with the cash price of the asset in the books of the hire purchaser. This is because the cash price represents the fair value of the asset at the time of acquisition.

When an Asset Is Acquired on Hire Purchase System, the Asset