AS 19

Accountancy

When the lease term is only 36 months but the useful life is 60 months , why full amount of machinery is considered for calculation not the proportional amount

Prethivi Rajan

CA Final

★ 9K+

08-Nov-23 11:27

329

Answers (3)

Lease term plus value at end of 3 years is considered. this has to be compared with the full amount.

CA Suraj Lakhotia

Admin

08-Nov-23 13:48

for understanding PV of LP + PV of RV = PV of Machine. PV of LP = PV of machine - PV of RV

CA Suraj Lakhotia

Admin

08-Nov-23 13:49

CA Suraj Lakhotia Admin

for understanding PV of LP + PV of RV = PV of Machine. PV of LP = PV of machine - PV of RV

Thank you Sir

Thread Starter

Prethivi Rajan

CA Final

★ 9K+

08-Nov-23 13:55

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AS 19

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