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<p><span>a- Cash down payment</span></p> <p><span>b- Cash price outstanding</span></p> <p><span><span>c- Hire purchase price</span></span></p> <p><span><span>d- None of the above</span></span></p> <p> </p>
The Answer B
Option B) Cash price outstanding
Option B
Cash Price Outstanding .........................................
B) Cash Price Outstanding..................
B Cash Price Outstanding is used as base for every lease payment.
CASH PRICES OUTSTANDING ( B )
Ans: B- (cash price outstanding)
Non-of these could be more appropriate I think.
Interest calculation made on the Principal amount of the lease but not added to it to accrue as in general cases. As an alternative Interest Accrued account is created. Interest on the principal is calculated and transferred to Interest accrued account (Debit Interest accrued account and credit Interest Account). First out of the subsequent installments Interest accrued account is set off first and if balance remain there (Debit interest accrued account for overdue interest and credit interest accrued account) Interest calculated in two stages1. On principle2.On accrued interest balances pending payment.
The interest rate is calculated depending on the particular lease product and pricing/interest terms on monthly, quarterly, half-yearly or yearly basis as the case may be but the Interest is charged to the Interest accrued Account on the due date of installments precisely or for the calculation sake as a matter of policy adopted at the end of every month/quarter/half year as the case may).
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