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
Ask the Tutor ACCA FR
Lease
4y ago#1No, 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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