In the books of Hirer, the interest and depreciation account will be transferred to ______.

Question

Quizplus · Accepted Answer

In the books of the hirer, the interest and depreciation account related to an asset acquired under a hire purchase agreement are transferred to the profit and loss account. This is because both interest and depreciation are considered expenses incurred in the process of generating revenue, and thus, they are accounted for in the profit and loss account to reflect their impact on the net income.

In the Books of Hirer, the Interest and Depreciation Account