sale and lease back

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May 26, 2016 at 9:35 pm #317350
adurich
Member
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..
hello,

could you please confirm about Question 2 a of june 2012 paper ..that the last double entry about sale and lease back …the finance lease creditor is $91m..is a balancing figure

am i right

please confirm

thank u
May 30, 2016 at 9:01 am #318080
P2-D2
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Hi,

Yes it is a balancing figure. Personally I’d account for the interest first DR Interest CR FL payable, using the 7% effective interest rate, and then I’d deal with the cash payment DR FL payable CR Bank.

Thanks
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