I need help to record the double entries for lessor and lessee side
could you help ?
if transfer is not a sale
seller -lessee
continue to recognise the asset (8.4mln)
recognise a financial liability(10mln)
what is double entries?
I am confused.I
buyer-lessor side
do not recognise the asset
recognise a financial asset(proceeds(10)
what is double entries?
I am confused.I
thanks in advance
Ask the Tutor ACCA FR
sale and leaseback example 8
if it is a sale
buyer-lessor
recognise the purchase of asset.apple bought the asset @ 10mln and its purchase is below
dr asset 10mln
cr cash 10mln
apply lessor accounting
i am confused in this part.after buying I lease it back to seller side then I have to record receivable @ pv of lease liability and in this case it is
dr receivable-7721735
cr asset-7721735
there is difference between 10000000-7721735=2278265-how di i record it?
4y ago#2Hi,
Is this not covered in the video that accompanies the class notes?
Thanks
Dear Tutor, I watched both FR and SBR and it has not been covered.
I am currenly preparing SBR and I know I do not need dr cr for sbr but for my in-depth understanding I want to know it.
I would like please pay attention to my question to get my answer.
Thanks in advance
4y ago#4Hi,
If you are preparing for SBR then I'd direct the question that way.
Thanks
Dear Tutor,I want my question to be answered because I want to know it.please do not be indifferent to my query.
4y ago#6Sorry, but all the journal entries required for FR are in the answers at the back of the class notes for the two sale and leaseback questions in the FR class notes.
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