Question

meaning of partial repossession​

Answer 1

Answer:

There are two possibilities in repossession of goods. When the vendor takes back the complete repossession of asset i.e., Complete Repossession, and. When the vendor takes repossession of only a part of the total asset sold to the hire purchaser i.e., Partial Repossession

Answer 2

Partial repossession:

• In the ins-tance of partial repossession, the vendor and the purchaser should reach an agreement on the value of the repossessed goods.
• In these cases, the agreed value of repossessed goods is debited from the Vendor's Account and credited to the Asset Account.
• Because the full goods are not repossessed, the Asset Account will have a balance for the goods not repossessed equal to the depreciated worth of the assets not repossessed, and the Vendor's Account will, of course, have a balance equal to the amount owed to the purchaser.