Default & Repossession in Hire Purchase | Complete & Partial Repossession | B.Com Accounting

What happens if a buyer stops paying instalments in a hire purchase agreement? Can the seller take back the asset? How do you record complete and partial repossession in accounting? In this beginner-friendly B.Com Accounting lesson, you'll learn the concepts of default and repossession in hire purchase agreements from first principles. We explain not just the journal entries, but also why repossession occurs, how ownership works under hire purchase, and how to account for complete and partial repossession in the books of both the hire purchaser and the hire vendor. In this video, you'll learn: Meaning of default in hire purchase Meaning and purpose of repossession Complete vs. partial repossession Accounting treatment in the books of the hire purchaser Accounting treatment in the books of the hire vendor Journal entries for repossession Repossessed Goods Account Step-by-step worked examples Common examination mistakes and how to avoid them Learning Outcomes By the end of this lesson, you'll be able to: Explain default and repossession with confidence. Distinguish between complete and partial repossession. Pass the necessary journal entries. Prepare ledger accounts for repossession transactions. Solve university examination problems with confidence. 📚 This video is ideal for: B.Com Students BBA Students CA Foundation Aspirants CMA Foundation Students Anyone learning financial accounting 👍 If this lesson helped you, please Like, Share, and Subscribe to B.Com Accounting Made Easy for more concept-first accounting tutorials.