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Lease

This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.

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April 18, 2022 at 4:28 am #653666
Sourav9271
Participant
- Topics: 170
- Replies: 120
Sir,
Inorder to account for lease free period can I CR Deffered income
instead of Accruals..
And then release by Dr Deffered income
Over the course of lease
April 22, 2022 at 11:24 am #654274
P2-D2
Keymaster
- Topics: 4
- Replies: 7142
No, this treatment is incorrect. You need to look at the total rental cost and spread it over the life of the lease to calculate the annual rental expense. As we have a rent free period then the other side of the double entry would be an accrual.
Thanks
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