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Post Info TOPIC: Early HP Settlement
morgwick


Senior Member

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Date:
Early HP Settlement
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Hi
If a HP agreement is settled early and the settlement figure is greater than the outstanding HP amount (capital element only) where would you post the difference? Would it go to HP interest on the P&L or charges?

Currently the accounts are as follows:-
Capital element outstanding is £4997
Settlement figure £5600 (which includes early penalties?)

Dr HP Account £5600, Cr new HP account (towards new car purchased) £5600

This will leave £603 on the HP Account

Do I
Cr HP Account £603, Dr HP Interest £603
or
Cr HP Account £603, Dr Finance Charges £603

Thanks





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Gill
attilabenko


Guru

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Posts: 595
Date:
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Hi,

I would do HP interest. I don't think at the end it would make a difference, all would come under charges&interest in overheads.

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Attila
semsley


Guru

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Posts: 1329
Date:
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I too would go for HP Interest

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Advice from beyond the grave!!!

E&OE
morgwick


Senior Member

Status: Offline
Posts: 246
Date:
Permalink Closed

Thank you both. Much appreciated

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Gill
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