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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › 2018 Sep, Q2, sale of Newall
Dear tutor
how should I understand “leased assets deemed surplus to requirement should be written off with the corresponding lease liability”?
$6 m is the penalty, should it add to lease liability as it’s part of expenses? writing off means two opposite transactions
Many thanks
Asset
Dr P&L Cr Asset
Liability
Dr Liability Cr P&L
Penalty
Dr P&L Cr Cash
