Lease rent paid by lessee is not an expense.

Lessor can claim depreciation on leased assets.

In an operative lease, period of lease is much less compared to the economic life of the asset.

In hire purchase transactions, the buyer pays the price in instalment.

n hire purchase, ownership of goods passes to the buyer on payment of ________ instalment.

The ownership of goods passes to the buyer immediately in Hire Purchase system.

The person who purchases goods on hire purchase basis is called Hire Vendor.

A debit balance in a joint venture account indicates

The Co-venturers always share the profits equally.

Find Gross Profit if

• Total Revenue = 35000
• Cost of Goods Sold = 25000