Question

In case of instalment system, total interest
receivable by the seller is credited to:​

Answer 1

Explanation:

Under this method, asset account is debited with the full amount of Cash Price (like Sales Method stated above) and Interest Suspense Account is opened which is debited at the time of taking delivery by the total amount of interest paid for all the years and the same is credited by debiting Interest Account in each...

Answer 2

Answer:

In the case of an instalment system, the total interest receivable by the seller is credited to the buyer.

Explanation:

What is an instalment plan?

• An instalment plan is granted on the promise, that the buyer will repay the full amount in instalments.
• There could be additional interest at times.
• In the case of an instalment system, the total interest receivable by the seller is credited to the buyer.