Menu
AS 19 leases
whether unearned finance income for lessor Is profit or loss?
Replies (2)
Currently reporting is based on accruals. So assuming this is the case, all Lease rental receivables is recognised in the first year in income statement. Then, when cash on instalments is received, receivables will reduce and cash will increase. So, it will always be treated as a profit.
Cash 100
Receivables 200
To Lease rental 100
To unearned lease rental 200
Thanks
Recent Topic
- Capital contribution in Firm
- Form 3CD – Clause 20(b) | ESI Contribution &
- Capital Gains on Dissolution of Partnership
- GST Payment through DRC-03 by cash against notice
- Schedule EI for ITR1
- INCOME TAX DEPARTMENT: DOUBLE STANDARDS
- ITR-4,under presumptive Taxation
- TDS data mismatch with SFT
- Resale of under construction Residential Flat part
- What would be my Salary
Related Topics
CAclubindia
