[accadenislux]

Hi,

You’re right, is easy and quick to put the amount straight to the use of right, but just at the beginning, the difference makes me a little bit confused. Now, everything is clear.

Thank you a lot for your time.

B.R
Denis

[accadenislux]

The first step in recognition:

DR right of use asset 22,730
CR Liability 22,730

DR Right of use asset 500 =>(1000 – 500)
CR CASH 500 =>(what we have paid)

[accadenislux]

Hi Chris,

Thank you for the clear answer above, helped me a lot.
With this explanation, the T-account makes more sense now on this topic.

Thank you again and wishing you a nice day.

Denis

[Author]

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