Financial Accounting PDF
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SPEI Bhavnagar
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Summary
This document appears to be part of a financial accounting textbook or study guide. It discusses various aspects of leasing, including types of leases, accounting treatment, and related concepts, with a specific focus on the difference between finance and operating leases and their respective accounting treatments in the books of both lessee and lessor.
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Charge 冖 Record 、 and the … 冖 her 一 commencement For 1540 Any manufacturer 0 financial Iflease should 冖 leased 一 冖 乛 the manufacturer the earning more It lease year hod. 一一 should pay on treatment 冖 for direct directcos direct manufacturer leasing on leased books profi can on 、 mentshould denved for direct Ofentering depreciation leased back represen operating 冖 in s can anylease Of enter-mg not ~ statements b straigh of which 冖 Ck assecosof operating the assecost be e a cost beor a Of used sale operating be 0 deferred loss 0 the 冖 of from冖 income her out sale. 冖 lessormanufacturer's of co … or and adopted. 冖 mmedia in dealer the Of they 乛 0 冖 、 or 冖 and ative 冖 乛 sale same In he 冖 asset line lease - Of or the be 0 recognized the the me as 冖 0 dealer … lease Accoun Of sale ce an leases are 冖 leases recognized leaseare dealer b recognized lease lease dimimshing and In and 0 hod per an 乛 as 、 a 冖 ely asset the In opera incurred. profit amortised proceeds seller-lessee lease lessor shall reflects AS-6. the operating lessor shall recognized 、 ing e recognized the should term lessor back time over 冖 may and fixed or 、 back F00 ingdoes as be does as be dealer's because or pathe expensed Leases be be valuemore loss added expensed lease added over assetin 目 lease over 冖 冖 expensed recognizedaccountusrng the e lease 0 、 expense not no as as the 日 乛 lessee because to Of systema 冖 冖 selling 0 recognize 0 vendor they lease recognrze because an profi 乛terme overthe leased the over冖 he carrying the expense are term in immediately 冖 balance carryng 冖 us the the profit. the or as ic e 一 mainly 、anyprofit 冖 leased out loss any expensesalloca s 一 冖 any leased in 冖 amoun asse raigh is propor- benefit' no amount sheet. no amount in 0 冖 selling 冖 relateda 冖 herand 冖 ion selling 冖 the term. the 、 冖 the that or line the 冖 In Of 20S 冖 Solution b) books. operating Example lakhs 一 、 The lessee immediately to Exar 冖 冖 冖 一 ears resultingin 209 Profit (f) 冖 ( machinery. d) 54P2 一 Y and profit Fair Fair Fair Fair Farr Sale Ltd.、 tple In 冖 X “ · 乛 冖 valuevaluevaluevaluevalue pricelease. 0 the2 、 , sale · proportion Ltd Rs. 一 “ X pnce loss should profit, profit, Loss lease amort loss LOSS profitimmedia Profit Any immedia 0 、 冖 The “ X price value carrycarry 乛 same carry prtce lease Rss10 recognized inancelease. X Ltd 一 Ltd.should of Commentequal immediately, Ltd. same 0 is is is lakhsshould Rs. Rs- Rs- Rs. Rs. less sold 、 、 、 冖 ro Accounting ing 、 amortize payment. machinery 冖 and amortize … 乛 , ng … ing ze back lakhs sells be 冖 一 0 ely 冖 ie. machinery carry 乛 35 46 40 45 50 乛 machinery a amountisamountisless carrying above loss below or thein amountis machinery, recognise recognised lakhs if— value , lakhslakhslakhslakhs lakhs carrymg on loss What immediately carn and if 、 Ing 冖 when operating depreciation books sale and and and and is was the fair lossis ely. provided ~ should treatment equal amountis 、 'value 0 rather 乛 was immediately sale sale sale sale , having leased sho 、 ing de more 乛 balance profit value amount sale machinery WDV equal compensated leased to immediately er bethetreatment uld amountless