Journal entries for lease accounting

Journal entries for lease accounting

Details for lease accounting

Let us assume the following details for lease accounting:

Lease start date: 1-Apr-2019

Lease end date: 31-Mar-2024

Lease payments: Rs. 2,75,000

Payment frequency: Annual – payable at the end

Incremental borrowing rate: 9%

 Right-of-use

 Recognition of Lease liability

Amortisation of Right-of-use

Finance cost

Trial balance

Profit & Loss Account

Balance Sheet