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AS-19 Leases

Accountancy

Doubt regarding finance charges in the pic In the top it is given assuming zero residual value but at 5th year 25000 of guaranteed residual value is added why is it could you please help me sir

Screenshot_2021-03-04-20-21-17-038_com.google.android.youtube.jpg

SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

1K+

04-Mar-21 21:41

261

Answers (4)

I think they meant zero unguaranteed residual value. Nevertheless, important to understand the concept here.


Sahibdeep Singh

Sahibdeep Singh

CA Inter

14K+

06-Mar-21 06:55

Sir I could not understand what concept should I understand here


Thread Starter

SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

1K+

06-Mar-21 08:21

Thread Starter

SREEABITHA SENTHILKUMAR

Sir I could not understand what concept should I understand here

The example shows how would finance charge be allocated over lease period. Assume zero residual value means zero UGR here


Sahibdeep Singh

Sahibdeep Singh

CA Inter

14K+

06-Mar-21 08:25

Ok sir thank you


Thread Starter

SREEABITHA SENTHILKUMAR

SREEABITHA SENTHILKUMAR

CA Inter

1K+

06-Mar-21 09:58

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