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Basically it is a difference between accrual and cash basis accounting. As an example terms of a 3 year lease are paying RS 20,000 immediately (not as a deposit but a payment) and then RS 3,000 a month for 3 years in a 3-year lease. Suppose this lease started 0n 3-1-08. Then on a cash basis the expense for the lessee (the person using the facilities and paying the rent) and the income for the lessor (the person who owns it and is collecting the rents) for the year 2008 is Rs 20,000 + 10 x (Rs 3,000) 0r Rs 50,000. However on an accrual basis you would use straight-line or the total payments over the lease life regardless of when paid divided by the time elapsed. So for the year 2008 the lessee would have expense of (20,000 + 36 x 3,000/36) x 10 or Rs 35,555 instead of Rs 50,000. Basically the up front payment has to be split equally over the 3 year period (straight line) instead of all counting in the first period.
What else can I help you with?
How do you calculate percent elongation in materials?
To calculate percent elongation with an equation: [(final length - initial length) / initial length] x 100 = percent elongation On a graph - To calculate percent elongation, draw a line to the x-axis from the point of fracture parallel to the straight line part of the graph. The extension at this point is then divided by the gauge length.
If you have a building office space rental at 11.50 per sq ft and its 792 sq ft How do you calculate the monthly rent?
You multiply $11.50 times 792 and then you tell your teacher you cheated on your homework and got the answer on line.
What does a straight line going through a note mean?
line note
A slope in a basic straight line graph?
Slope of a straight line on a Cartesian coordinated graph is 'rise over run' = y2-y1/x2-x1 = change in 'y'/change in 'x'
If a straight line graph has a gradient of zero it must be horizontal?
120?
How do you calculate straight line angles?
invers tangent(slope)
What is the rectilinear motion formula used to calculate the displacement of an object moving in a straight line?
The formula used to calculate the displacement of an object moving in a straight line is: Displacement Final Position - Initial Position
What is a basic stitch?
Straight stitch -- I think In production straight line system how to calculate standard allow minut in women's shirts
How do you adjust straight-line amortization of deferred rent when lease is extended?
When using straight-line rent expense and you amend the lease you take the deferred rent liability at the time of the amendment and amortize it over the life of the new amendment. If you are still required to account for future rent payments on a straight-line basis, you will need to take into account the new lease payments that will be made over the remaining lease term and adjust the future amortization. To do this, you must calculate the total rent expense that will be paid over the revised lease term (i.e. from the original commencement date through the extended termination date). Then, you will subtract the current balance of deferred rent, as this is the portion that has already been amortized. The remaining balance represents the rent expense that needs to be amortized over the remaining life of the lease. Therefore, you will divide this amount by the number of periods remaining in the lease to determine your monthly rent expense journal entry that will be made over the life of the extended lease.
What formula do you use to calculate the celebration of an object moving in a straight line?
To calculate the acceleration of an object moving in a straight line, you can use the formula a = (Vf - Vi) / t, where a is acceleration, Vf is the final velocity, Vi is the initial velocity, and t is the time taken.
What is the horizontal acceleration formula used to calculate the rate of change in velocity over time in a straight line motion?
The horizontal acceleration formula used to calculate the rate of change in velocity over time in straight line motion is: Acceleration (Change in Velocity) / Time
Why straight line is the most common depreciation method used?
every person can calculate depreciation easily
Why straight-line is the most common depreciation method used?
every person can calculate depreciation easily
Where can I find the straight line distance between two places?
"As the crow flies" means a straight line distance between two points, and that would mean flying. There are several web sites on line, that will calculate the flight distance for you, as long as you input the origin and the destination.
What formula do you use to calculate the acceleration of an object moving in a straight line?
Acceleration = Final velocity - Initial velocity / time
Do line segments have to be straight?
Yes. If it is not straight, then it is not a line.
What is a deferred rent payable?
Deferred rent payable is the sum of the difference between a monthly rent payment and the monthly rent expense of an operating lease that contains escalated payments in future periods. The rent expense is the sum of all rent payments over the term of the lease divided by the number of periods contained in the lease otherwise known as straight-line amortization. This rent expense amount can/may differ from the monthly rent payments. The difference is deferred rent payable.
