Can anyone help me with the accounting treatment for a hire purchase of a van?
Dr fixed asset with the total cost and Cr Hire Purchase Liability with total cost
Dr Depreciation charge in P&L Cr Depreciation
And then for every payment instalment do you Cr bank and Dr Hire purchase Liability?
How do I treat the interest? and when it comes to the tax, would I use AIA for the total amount of the fixed asset as though it had been paid for all at once in cash?