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

CA Inter

★ 1K+

04-Mar-21 21:41

573

Answers (4)

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

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

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

CA Inter

★ 14K+

06-Mar-21 08:25

Ok sir thank you

Thread Starter

SREEABITHA SENTHILKUMAR

CA Inter

★ 1K+

06-Mar-21 09:58