Debit cash / bankCredit paid in capital
When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. Sources: SFAS No. 13; RIA Checkpoint
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
Lease which is done for the entire productive life of an asset is called "Capital lease or finance lease".
Called up share capital a/c Dr. To share Forfiture A/c To Unpaid Call Amount A/c
Debit cash / bankCredit paid in capital
[Debit] Cash / bank [Credit] Share capital
debit business expensescredit owner capital account
it is lease paid on capital invested
Finance lease and operating lease are different things.
i dont know. How DO you make a entry for a capital.
When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. Sources: SFAS No. 13; RIA Checkpoint
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
[Debit] Asset / goods in kind [Credit] Share Capital
Lease which is done for the entire productive life of an asset is called "Capital lease or finance lease".
Debit cash / bank / asset in kind xxxx credit partner capital account xxxx
If a copy of the lease agreement is made available to the accountant, this should be easily determined.