Right of Use Asset value NOT equal to Lease Liability - double entry?

DDarren4y ago

Hi, If I have: Present Value of future lease costs = 10,250 and Lease Administration Fee = 250 Then the Right of Use asset is 10,500 But the lease liability is 10,250. If I Debit Right of Use Asset 10,500 Credit Lease Liability 10,250 the entry doesn't balance. I don't know how to post this entry?

AAli4y ago#1

If you wish to ask the tutor directly then kindly start a thread in Ask the Tutor forums. This forum is for students to help each other. The lease administration costs will presumably be paid for in cash, hence the credit entry will be in cash account.

DDarren4y ago#2

Hi F6ali I didn't want to ask the tutor directly and this is why I posted in this forum. But thank you for your advice.

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