Preparing to Post your Hire Purchase Journals

 

Before you begin to record your hire purchase agreement, check that you have the following codes in your chart of accounts.

Code

Category

Report and location in report

0050

Motor Vehicles

Balance Sheet - Fixed Assets

0051

Motor Vehicle Depreciation

Balance Sheet - Fixed Assets

4200

Sales of Assets

Profit and Loss - Sales

2201

Purchase Tax Control Account

Balance Sheet - Current Liabilities

2310

HP Creditor

Balance Sheet - Current Liabilities

7904

HP Interest

Profit and Loss - Expenses

7302

Licences

Profit and Loss - Expenses

7304

Miscellaneous Motor Expenses

Profit and Loss - Expenses

1200

Bank Current Account

Balance Sheet - Current Assets/Liabilities

Related Topics

Hire Purchase Agreements

To Record the Hire Purchase Agreement

To Record the Monthly Hire Purchase Interest Charges

To Record the Monthly Loan Repayment

Recurring Entries

To Add a Recurring Entry