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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Ch 20 – Lease – Example 1
A little confused – is it not just:
Dr: Expense A/C (SPL) 1,500
Cr: Lease Payable A/C (SFP) 1,500
SPL for year 20XX:
Lease expense (1,500)
SFP @ Y/E:
Liabilities:
Lease Payable 1,500
Why would “… of which $500 would be released over the remaining three years of the lease.”?
Sorted – I think. A little long winded 🙂
Year 1:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP @ y/e 1:
Liability – Lease Payable 1,500
Year 2:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP after transaction:
Liability – Lease Payable 3,000
Dr. Lease Payable 2,000
Cr. Bank 2,000
SFP @ y/e 2:
Liability – Lease Payable 1,000
Year 3:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP after transaction:
Liability – Lease Payable 2,500
Dr. Lease Payable 2,000
Cr. Bank 2,000
SFP @ y/e 3:
Liability – Lease Payable 500
Year 4:
Dr. SPL 1,500
Cr. Lease Payable 1,500
SFP after transaction:
Liability – Lease Payable 2,000
Dr. Lease Payable 2,000
Cr. Bank 2,000
SFP @ y/e 4:
Liability – Lease Payable nil