sale and leaseback example 8

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March 21, 2022 at 8:23 am #651578
kennigara
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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
March 21, 2022 at 8:57 am #651580
kennigara
- Topics: 181
- Replies: 242
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?
March 23, 2022 at 5:39 pm #651741
P2-D2
Keymaster
- Topics: 4
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Hi,

Is this not covered in the video that accompanies the class notes?

Thanks
March 24, 2022 at 4:21 pm #651819
kennigara
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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
March 26, 2022 at 8:40 am #651905
P2-D2
Keymaster
- Topics: 4
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Hi,

If you are preparing for SBR then I’d direct the question that way.

Thanks
March 28, 2022 at 1:15 pm #652112
kennigara
- Topics: 181
- Replies: 242
Dear Tutor,I want my question to be answered because I want to know it.please do not be indifferent to my query.
April 3, 2022 at 4:36 pm #652646
P2-D2
Keymaster
- Topics: 4
- Replies: 6119
Sorry, 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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