finance lease

The double entry is, very simply, Dr Obligations under Finance Lease Account Cr Cash Why do you think it has anything to do with statement of profit or loss?

Because it's not an expense - it's the part payment towards the debt hat is the amount owed to the finance lease creditor. The only expense in the context of finance leases is the finance lease interest and, in the case of a first installment paid in advance (what, in the UK, we call a deposit) there is no finance lease interest included. (And, of course, the depreciation on the finance leased asset!) Is that better?

You're welcome