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
To Record the Hire Purchase Agreement
To Record the Monthly Hire Purchase Interest Charges