Tag: economics

Instalment scheme allows customers to pay a sum of money in small parts in a fixed period of time. A part of the amount of product is paid at the time of purchase and rest is paid in regular periodic instalments.

Quality of asset purchased does not give a difference between a hire purchase and a nominal purchase

Hire vendor has the right of sell under hire purchase system.

In Hire purchase system a buyer pays for a thing in regular installments.

Hire vendor is the name of the seller under wire purchase system.

In hire purchase system, purchaser agrees to pay for goods like a installments.

Hirer is the name of the buyer under hire purchase system.

The depreciation on an asset purchased through hire purchase should be based on the cost price of the asset only.

When, final installment is paid and purchased agrees to a legal option to but the asset, then the asset legally belong to the purchaser under a high purchase agreement.

In hire purchase, ownership of the property is transferred to the hire on the payment of the last installment