Professional Documents
Culture Documents
n 5
Rentals 1238.44
Lease term = Economic life FMV 5000
PV of MLP 5000.01
Lease Amortization Schedule
Date Principal Begning Annual Rentals Interest @12%
1/1/2005 5000.00 1238.44 0.00
1/1/2006 3761.56 1238.44 451.39
1/1/2007 2974.51 1238.44 356.94
1/1/2008 2093.01 1238.44 251.16
1/1/2009 1105.73 1238.44 132.69
6192.2 1192.18
pmt(1-(1/(1+i)^n/i))*(1+i) Due
Date Description Dr Cr
1/1/1998 Asset under finance lease 1000000
Liability under finance lease 1000000
1527045 527047.6244378
Liabilities
Current Liabilities
Liability under finance lease 168674.4
Non-Current Liabilities
Liability under finance lease 685916.6
Lessee Accounting
PV of MLP = PV of LR + PV of BPO
LR 8247.42 Beg of year Lease Am
LT (n) 5 PV of LR 33297.72 Year Principal Beg
r 12% PV of BPO 1702.28057 1/4/2001 35000
FMV 35000 PV MLP 35000 1/4/2002 26752.58
BPO 3000 1/4/2003 21715.4696
1/4/2004 16073.905952
PV = FV/(1+i)^n 1/4/2005 9755.3546662
31/3/2006 2678.5772262
Liabilities
Current Liabilities
Interest Payable 2407.7322 1954.395
Liability under FL 5037.11 5641.6
Total CL 7444.84 7596.0
LT 8 Years Fraction
FMV 72000 1 7
Life 8 2 6
Rental Pmt 12269 3 5
r 10% 4 4
5 3
PV MLP 72000 6 2
Minimum LP 98152 LRPP x LT 7 1
interest charge/Finan 26152 8 0
28
SYDM = No of years (time period) left upto Year Zero x Total Intere
n of finance/interest charges through SYGM
Lease Amortization Schedule
interest/finance charges Year Principal beg Annual Rentals Interest
6538.09 1 72000 12269
5604.08 2 59731 12269 6538.09
4670.07 3 54000.092381 12269 5604.08
3736.05 4 47335.171566 12269 4670.07
2802.04 5 39736.237552 12269 3736.05
1868.03 6 31203.290342 12269 2802.04
934.01 7 21736.329934 12269 1868.03
0.00 8 11335.356328 12269 934.01
26152.37 98152 26152.37
PV of MLP
PV of AR 33653.55 pmt(1-(1/(1+i)^n/i)) a
PV MLP 34376.93
Less: RV 1500
32876.93
4
Dep 8219.23225
b
Lease Amortization Schedule
Rentals Interest Principal portion of rentals Principal at end
13000 6875.39 6124.61 28252.31
13000 5650.463 7349.53703703704 20902.78
13000 4180.5556 8819.44444444444 12083.33
13000 2416.6667 10583.3333333333 1500.00
52000 19123.07
Journal Entries
Asset under FL 34376.93
Liability under FL 34376.93
LT 5
AR 1238.44 Begning
UL 5
r 12%
FMV 5000
Non-Current Assets
Net investment in FL 2974.5 31/12/2005
1/1/2006
Notes to Accounts
MRP/MLP 4953.76 31/12/2006
Add: RV 0
Subtotal 4953.76
Less: unearned finance income 740.82
4212.94
Less: current portion 787.05
3425.89
MLP = Lease rentals x lease term
Cash 1238.44
Lease payment receivables 1238.44
Cash 1238.44
Lease payment receivables 1238.44
Balance Sheet
30/6/2003
Current Laibilities
liability under FL 33377.892651
Non-Cuurent Liab
Liability under FL 138082.20722
TL 171460.09987
Lease Amortization Schedule
Rentals Interest PPAR Principal at end
30000 16288.4 13711.6 186288.4
30000 15171.7 14828.3 171460.0998728
30000 13964.05 16035.95 155424.1533266
30000 12658.05 17341.95 138082.2072219
30000 11245.69 18754.31 119327.8983424
30000 9718.303 20281.7 99046.20103924
30000 8066.521 21933.48 77112.72174427
30000 6280.214 23719.79 53392.93602857
30000 4348.427 25651.57 27741.36352461
30000 2259.312 27740.69 0
2003
30/6/200430/6/200530/6/2006 Assets
AUFL 200000
39036.01 45653.27 53392.26 Less: AD 40000
NBV 160000
99046.2 53392.94 0
138082.2 99046.2 53392.26
Books of lessor
LT 5
AR 74369.35 Begning
UL 5
r 25%
FMV 200000
31/12/05
Non-Current Assets
Net investment in FL 145169 107092
175631 145169
31/12/2006
Notes to Accounts
MRP/MLP 4953.76
Add: RV 0
Subtotal 4953.76
Less: unearned finance income 740.82
4212.94
Less: current portion 787.05
3425.89
MLP = Lease rentals x lease term
Cash 74369.35
Lease payment receivables 74369.35
Cash 74369.35
Lease payment receivables 74369.35
investment at end
175631
145169
107092
59495
0