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  • CA Inter Lease

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    Aysha Riya
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    The document discusses key terms related to leases and hire purchase agreements. A lessor is the owner of the asset in a lease agreement. Hire purchase provisions are covered under the Hire Purchase Act of 1972. In a hire purchase agreement, the person who sells the goods to the buyer is known as the hire vendor. A real account is a type of nominal account. The amount paid upon entering into a hire purchase agreement is called the down payment. In a hire purchase agreement, ownership transfers upon payment of the last installment. The installments paid by the hire purchaser are treated as rent by the hire vendor for the use of the asset if not all installments are paid.

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    The document discusses key terms related to leases and hire purchase agreements. A lessor is the owner of the asset in a lease agreement. Hire purchase provisions are covered under the Hire Purchase Act of 1972. In a hire purchase agreement, the person who sells the goods to the buyer is known as the hire vendor. A real account is a type of nominal account. The amount paid upon entering into a hire purchase agreement is called the down payment. In a hire purchase agreement, ownership transfers upon payment of the last installment. The installments paid by the hire purchaser are treated as rent by the hire vendor for the use of the asset if not all installments are paid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views4 pages

    CA Inter Lease

    Uploaded by

    Aysha Riya
    The document discusses key terms related to leases and hire purchase agreements. A lessor is the owner of the asset in a lease agreement. Hire purchase provisions are covered under the Hire Purchase Act of 1972. In a hire purchase agreement, the person who sells the goods to the buyer is known as the hire vendor. A real account is a type of nominal account. The amount paid upon entering into a hire purchase agreement is called the down payment. In a hire purchase agreement, ownership transfers upon payment of the last installment. The installments paid by the hire purchaser are treated as rent by the hire vendor for the use of the asset if not all installments are paid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    CA INTER – LEASES

    1. is the owner of the asset in a lease agreement

    a) Lessee

    b) Tenant

    c) Lessor

    2. Hire Purchase provisions are covered under Hire Purchase Act of ---------

    a) 1972

    b) 1982

    c) 1962

    3. In Hire Purchase, the person who sells the goods to the buyer is known as

    a) Hire Purchaser

    b) Buyer

    c) Hire Vendor

    4. Royalty Account is -type of Account

    a) Nominal Account

    b) Personal Account

    c) Real Account

    5. In Hire Purchase System the amount which has to be paid on entering into the agreement

    is known as-----

    a) First Payment

    b) First Installment
    c) Down Payment

    Answer: c) Down Payment - The amount that is paid while entering into a hire purchase
    agreement is known as down payment.

    6. In -- Ownership is transferred on the payment of the last installment.

    a) Installment Sale

    b) Royalty Agreement

    c) Hire Purchase

    Answer: c) Hire Purchase As per the provisions of the hire purchase Act, the

    hire purchaser is allowed to take the possession of the goods on payment of down payment
    amount, but he becomes the rightful owner only on payment of the last installment. The Hire
    vendor has the rights to take away the goods if the purchaser is not able to pay the installments.

    7. The installments paid by the hire purchaser, are treated as-------- by the hire vendor

    on non payment of all the installments-.

    a) Amount paid towards the purchase price of the Asset

    b) Interest

    c) Rent, for the use of the Asset


    8. The Price which is paid for purchasing the asset on cash basis is known as

    a) Cash Price

    b) Hire Purchase Price

    c) Down payment

    9. The contract to purchase an asset on an hire purchase basis, takes place between the
    following parties:

    a) Buyer and Seller

    b) Borrower and Lender

    c) Hire Purchaser and Hire Vendor

    10. In a lease agreement, a clause may be included to direct the Lessee to pay

    whether the Lessee benefits or not in the stipulated period of time.

    a) Royalty

    b) Down Payment

    c) Minimum Rent

    11. The difference between Minimum Rent and Royalty is known as

    a) Lease Rent

    b) Interest

    c) Short Workings

    12. The main difference between hire purchase and installment system is-

    a) Transfer of ownership

    b) Number of Installments

    c) Amount of first installment

    13. If the Clause includes in the Lease Agreement, the Lessee can the Losses of Previous years
    within the stipulated term as agreed and included in the Agreement.
    a) Recover or Recoup the Short Workings

    b) Increase

    c) Decrease

    14. Minimum Rent is also known as---

    (a) Rock Rent

    b) Dead Rent

    c) Both a and b

    15. If the Lessor and Lessee are situated in two different countries, the type of lease is

    known as

    a) Cross Border Lease

    b) Financial Lease

    c) Operating Lease

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