Hire purchases-ipcc

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phaniram (Querist)
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18 October 2011 could some one help me how to tackle with stock/asset repossessed .i mean wile preparing HP trading A\c at which value should the repossessed stock or asset should be taken.I'm getting damn confusion about it

shakuntala chhangani

shakuntala chhangani (Expert)
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30 October 2011 Hi,while solving HP problems,Prepare Repossessed stock a/c in two sections. just transfer HPP of goods repossessed from credit side and loading from debit side of HP Trading A/c to repossessed stock A/c (Ist part). Show he valuation given in the question as closing balance of 1st part. The differencial figure is Profit or Loss on repossession. Closing balance of 1st part is opening balance of second part. record further exp. incurred on repossessed stock on dr. side and sales proceeds on cr. side. the difference is Profit or loss on sale of repossessed stock.
Regards, CA Shakuntala Chhangani

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