Facts: A company is selling a product to its clients with a option to recover the same in 36 installments. The agreement in this regard carries a clause that 'ownership of the goods would be transferred after the last installment'.
24 June 2011
My dear, it seems to be hire purchase (AS 19). Hence amount of instalment due can be recognised as sales. Regards, CA Shakuntala Chhangani
CAclubindia
