Dear friends,
I need an urgent help.
I brought an asset under finance lease (no legal title, covers major lifetime , risks are borne by me) from X by Rs. 100. To finance this asset purchase I borrowed Rs. 80 from bank and Rs. 20 from my equity. I pay full Rs. 100 at once to X with one installment. Lease term is 15 years.
Loan repayment terms:
- 60 monthly installments
- 13% interest rate
- Tenures 6 years (1 year grace period)
What are the effects in my Income statement and Balance sheet?
Please help me with details.
(god saves me as this forum exists :-p)
CAclubindia
