Question

The ownership of an asset
purchased on hire purchase is
not transferred till the payment
of the last installment is made
but the asset is shown in the
books of hire purchaser​

Answer 1

Answer:

The ownership of an asset

purchased on hire purchase is

not transferred till the payment

of the last installment is made

but the asset is shown in the

books of hire purchaser

Answer 2

The asset is shown in the books of the hire purchaser because he's allowed to charge depreciation in his books against the assets.

Explanation:

• The Hire purchase is the way of acquiring the assets in which the hire purchaser is allowed to take the asset with him with a short amount of down payment.
• The ownership gets transferred to the owner only after the payment of the last part.
• The Hire purchaser is allowed charge depreciation in his books of accounts.
• The Hire vendor has the power to repossess the asset if the hire purchaser makes a default on the payment.