Lease asset booking financed by debt & equity

Lease querry

In your case you have purchased an asset on lease for 100 using 80 of debt and 20 from equity. It is simple u record the following entry:

1. Asset Dr 100

To bank account Cr 100 ( Includes bank loan of 80 and cash balance for equity 20).

2. Depreciate the Asset over its useful life.

3. Record interest  cost on bank loan in income statement and pay the same in accordance with the loan agreement with the bank.

4. Repayment the loan installments in accordance with the loan agreement.

Lease accounting is irrelevant as u have paid the entire cost of the asset to the lessor in one installment.

Thanks