Objectives of the Asset Verification - by Razia

Objectives of the asset verification
(1) To comprehensively find out the asset status of central enterprises, to faithfully uncover the conflicts and problems existing in enterprises, to truthfully and completely reflect the asset status, financial status and business achievements of enterprises and to enhance the quality of the accounting information of enterprises.
(2) To comprehensively check and verify the asset losses of central enterprises and cope with the losses in light of the policies of the state on asset verification, to promote enterprises to solve the problems that remain unsettled due to historical reasons, and to create conditions for the implementation of the Enterprise Accounting System.
(3) Through asset verification on public institutions affiliated to the central enterprises, to verify the status on asset and rights and interests of the public institutions, to regulate the accounting and financial reporting system of the enterprises, and to promote the real reflection of the business strength of the enterprises.
(4)  To comprehensively check and verify the various kinds of assets, debts and ownership rights of overseas subsidiaries affiliated to the central enterprises, to regulate the financial supervision and administration and the financial reporting system of overseas enterprises, and to promote and intensify the supervision and administration on overseas state-owned assets.

CREDIT SALE - by Razia

1. PARTIES-   SELLER AND BUYER.

2. OWNERSHIP AND TITE OF GOODS- OWNERSHIP AND TITTLE OF GOODS IS TRANSFERED TO THE BUYER PF THE GOODS.

3. RELATIONSHIP-THE RELATIONSHIP BETWEEN THE SELLER AND THE BUYER OF THE GOODS IS THAT OF A CREDITOR AND DEBTOR.

4. EXPENSES- EXPESES INCURED AFTER SALE OF GOOD ARE BORNE BY THE BUYER.

5. RISK- RISK ATTACHED TO THE GOODS SOLD IS TRANSFERED TO THE BUYER OF GOODS AS SOON AS GOODS ARE SOLD. IN   CASE, THE GOODS ARE DESTROYED AFTER, THE LOSS IS SUFFERED BY THE BUYER.

6. RETURN OF GOODS- RETURN OF GOODS IS NOT POSSIBLE AS GOODS ONCE SOLD ARE NOT RETURABLE.

7. ACCOUNT SALES- NO ACCOUNT SALE IS REQUIRED TO BE SUBMITTED BY THE BUYER TO THE SELLER.

8. UNSOLD GOODS- THE SELLER HAS NOTHING TO DO WITH THE GOODS WHICH COULD NOT BE SOLD.

Hire-Purchase & Installment Payment System

Hire-Purchase system

It is a special system of purchase and sale of goods. Under this system purchaser pays the price of the goods in installments. The installments may be annual, six monthly, quarterly, monthly fortnightly etc. Under this system the goods are delivered to the purchaser at the time of agreement before the payment of installments but the title on the goods is transferred after the payment of all installments as per the hire-purchase agreement. The special feature of a hire-purchase transaction is that the payment of every installment is treated as the payment of hire charges by the purchaser to the hire vendor till the payment of the last installment. After the payment of the last installment, the amount of various installments paid is appropriated towards the payment of the price of the goods sold and the ownership or the goods is transferred to the purchaser.

Installment Payment System

It is system of purchase and sale of goods in which title of goods is immediately transferred to the purchaser at the time of sale of goods and the sale price of the goods is paid in installments. In the event of default in payment of any installment, the seller has no right to take back goods from the possession of the purchaser. He can file a suit for the recovery of the outstanding balance of the price of goods sold. The followings are the differences between Hire-purchase system and Installment payment system:

Difference between Hire-Purchase and Installment System

Ownership

In Hire-purchase system, the transfer of ownership takes place after the payment of all installments while in case of Installment payment system, the ownership is transferred immediately at the time of agreement.

Type of Contract / Agreement

In Hire-purchase system, the hire-purchase agreement is like a contract of hire though later on it may become a purchase after the payment of last installment while in Installment payment system, the agreement is like a contract of credit purchase.

Possession / Rights of Parties

In case of default in payment, in Hire-purchase system the vendor has a right to back goods from the possession of the hire-purchaser while in case of Installment payment system, the vendor has no right to take back the goods from the possession of the purchaser; he can simply sue for the balance due.

Sales of Goods / Property

In Hire-purchase system, if the purchaser sells the goods to a third party before the payment of last installment, the third party does not get a better title on the goods purchased. But in case of Installment payment system, the third party gets a better title on the goods purchased.

Applicable Act

In Hire-purchase system the provisions of the Hire-purchase Act apply to the transaction while in case of Installment payment system, the provisions of Sale of Goods Act apply to the transaction.