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FAC3762 - Leases (Lessee)
- Institution
- University Of South Africa (Unisa)
Excel document containing an exam template for the content covered in the course.
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Leases - Lessee AccountingJournal entries:
Date Description Debit Credit Reference
1. Initial recognition (par 24(a) & 26)
Right of use assets (SFP) -
VAT (SFP) -
Lease liability (SFP) -
2. Prepaid lease payments (Par 24(b))
Right of use asset (SFP) -
Bank (SFP) -
3. Capitalise initial direct costs (par 24©)
Right of use asset (SFP) -
VAT (SFP) -
Bank (SFP) -
4. Dismantling provision (par 24(d))
Right of use asset (SFP) -
Provision (SFP) -
5. Recognition of finance costs (par 36(a))
Finance costs (PL) -
Lease liability (SFP) -
6. Payment of lease liability (par 36(b))
Lease liability (SFP) -
Bank (SFP) -
7. Depreciate ROU asset
Depreciation (PL) -
Accumulated Depreciation (SFP) -
8. Accrue for interest at reporting date
Finance income (PL) -
Lease liability / Accrual (SFP) -
9. Reverse accrual from previous year
Lease liability / Accrual (SFP) -
Finance costs (PL) -
10. Reflect current portion of lease liability
Lease liability - non current (SFP) -
Lease liability - current (SFP) -
11.Recognise deferred tax
, Deferred Tax (SFP/ PL) -
Deferred Tax (SFP/ PL) -
Reassessment of lease liability
Right of use asset (SFP) / Expense (PL) -
Lease liability (SFP) -
OR
2. Decrease in lease liability (par 39 - 43)
Lease liability (SFP) -
Right of use asset (SFP) / Income (PL) -
- -
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