Under Hire Purchase financing terms, does this means I have to recognize the item as Fixed Asset? There is no Downpayment and Security Deposit required.

Thanks and regards

Under Hire Purchase financing terms, does this means I have to recognize the item as Fixed Asset? There is no Down payment and Security Deposit required.

CORRECT: Under HP system, like finance lease, you acquire an asset the title of which will be passed on to you on payment of all installments.

The HP contract may stipulate no down payment or security. If you have not paid any amount
it is okay.

When will I recognize as Fixed Asset in the books - HP finance terms start or after payment of all the installments?

The date on which the asset is received. The HP contract entitles the entity to the possession of the asset for its use.

Noted. Thanks rehmanvohra. Much appreciated.

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