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IAS17 Leases

eimearnid · 2012-04-14 12:34:25

A question re finance leases in accounts When a lease payment is made (say 10,000) and 5000 is finance and 5000 is against the liability owed would I be correct in saying that this affects the Income statement as follows : 5000, Dr finange charges (I/S) 5000, Dr Finance liabily (B/S) 10000, Cr Bank Is there any other…

14-04-2012 12:34pm

#1

eimearnid

Registered Users, Registered Users 2 Posts: 50 ✭✭

Join Date: February 2011

Posts: 37

A question re finance leases in accounts

When a lease payment is made (say 10,000) and 5000 is finance and 5000 is against the liability owed would I be correct in saying that this affects the Income statement as follows :

5000, Dr finange charges (I/S)
5000, Dr Finance liabily (B/S)
10000, Cr Bank

Is there any other income statement account that should be involved here? Am confused as I've seen a couple of examples showing the 10k added back to cost of sales ( or admin costs).

Thanks in advance

0

Comments

#2 14-04-2012 1:06pm

mrduffy

Registered Users, Registered Users 2 Posts: 169 ✭✭

Join Date: June 2009

Posts: 155

Their is different transactions,

1) Repayment of fin lease

dr bank cr fin lease

2) Fin charge

dr soci - i/s cr fin lease

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