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Commerce · Q1350

Accounting

Graduate and Post Graduate · Commerce · question 1350

Q1350

In case of Installment Payment System, which one of the following statements is not true?

A.
Payment of purchase price is made in agreed installments
B.
On default of payment of installment, seller has a right to take back the goods
Answer
C.
Purchaser prepares Assets Account, Seller's Account and Interest Suspense Account in his books
D.
Purchaser has right to sell the asset at any time after receiving the delivery

Answer: Option B

Solution

Answer: Option B
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