Lease accounting with an interest-free deposit
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
Lease Deposit: Rs. 3,00,000
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
Interest free deposit
Imputed interest income
Amortisation of Right-of-use
Trial balance
Profit and Loss Account
Balance Sheet
Lease Accounting Software Pricing
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