Question

On the balance sheet of a company, the value of the asset bought through hire purchase will appear as:

• A. Cost less depreciation to date less amount owing on hire purchase less interest owing
• B. Cost less amounts owing on hire purchase
• C. Cost less depreciation to date less amount owing on hire purchase
• D. Cost less depreciation to date

Answer 1

The correct option is D Cost less depreciation to date

The value of the asset bought through hire purchase will appear as cost less depreciation to date on the balance sheet of a company.