[Solved] The interest charged on the hire purchase should appear in the profit and loss account in what manner?

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Q.	The interest charged on the hire purchase should appear in the profit and loss account in what manner?
A.	the total interest levied should be divided equally over the total period the for purchase agreement
B.	the interest charged in that period only should be included
C.	interest should instead be capitalised on the balance sheet
D.	interest should be apportioned in proportion to the repayment totals
Answer» B. the interest charged in that period only should be included

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