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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Prepayment of short-term leases
If a lessee pays $32,000 whole 8-month lease in advance, of which, only $8000 belongs to the current accounting period, would the journal entry for it be:
DR SPL $8000
DR prepayments $24,000
CR bank $32,000
Then subsequently, you credit the prepayment balance in the next accounting period?
Yes, that is correct.
