This article throws light upon the six main steps involved in computing lease rentals. 1. Determine the cost of the asset which includes the actual purchase price and expenses like freight, insurance, taxes and installation, etc. 2. Determine the cash flows to the lessor on account of ownership of the asset. These include tax advantage provided by depreciation and investment [...]
After reading this article you will learn about Hire-Purchase:- 1. Meaning of Hire Purchase 2. Features of Hire Purchase 3. Legal Position 4. Method of Computing. Meaning of Hire Purchase: Hire purchase means a transaction where goods are purchased and sold on the terms that: (i) Payment will be made in installments, (ii) The possession of the goods is given [...]
After reading this article you will learn about the Accounting for Lease as per Accounting Standards (AS)–19:- 1. Scope of Lease 2. Definitions of Lease 3. Classification 4. Financial Statements of Lessees 5. Financial Statements of Lessors 6. Sale and Leaseback Transactions. Contents: Scope of Lease Definitions of Lease Classification of Leases Leases in the Financial Statements of Lessees Leases [...]