Page 73 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five

Chapter Accounting for hire purchase

Eight
Chapter One: The Concepts, theories and principles of accounting

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Introduction
The student will learn the key aspects of accounting for hire purchases,
including their definition, nature, and the associated terminologies,
as well as and crucial accounting principles tied to hire purchase
agreements and their application in preparing accounting records
and reports for both the seller (vendor) and buyer. The competencies
developed will enable the student to have skills of assessing payment
instalments that are economically friendly.

Student’s activities

(a) Describe the concepts and principles applied in the
accounting of hire purchases

(b) Prepare and maintain accounting records related to hire
purchases

Teaching and learning resources

Sample of:

• Acknowledgment of receipt
• Schedule of payments

• Disclosure statement
• Invoice or sales contract
• Hire purchase agreement

Teacher’s Guide Form Five
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ACCOUNTANCY_TG_2024_FINAL DUMMY.indd 59 23/06/2024 17:45