How to Record Hire Purchase Motor Vehicle?
Example 1:
Motor Vehicle ABC XXXX cost = RM 238,446.00
Insurance = RM 7,842.35
Loan from Bank = RM 200,000
Loan from Director = RM 41,288.75
Deposit = RM 5,000
Hire Purchase Interest Suspense = RM 32,480.00
| 1.) To Record Deposit Paid | ||
| Dr. Deposit Paid (Current Assets) | RM 5,000.00 | |
| Cr. Bank (Current Assets) | RM 5,000.00 | |
| 2.) To Update Hire Purchase of Motor Vehicle | ||
| Dr. Motor Vehicle – ABC XXXX (Fixed Asset) | RM 238,446.40 | |
| Dr. Road Tax & Insurance (Expenses) | RM 7,842.35 | |
| Cr. Deposit Paid (Current Assets) | RM 5,000.00 | |
| Cr. Amount Owing to Director (Current Liabity) | RM 41,288.75 | |
| Cr. Hire Purchase – ABC XXXX (Current Liability) | RM 200,000.00 | |
| 3.) To Updated Hire Purchase Interest in Suspense |
||
| Dr. HP Interest in Suspense – ABC XXXX (Negative Current Liability) | RM 32,480.00 | |
| Cr. Hire Purchase – ABC XXXX (Current Liability) | RM 32,480.00 | |
