Require clarity on the solution of lease exam question
Posted: 22 Mar 2024, 09:49
I have 2 concerns related to the attached question, will appreciate if anyone can go through the question and provide clarification. Thanks.
1. In the statement of profit and loss depreciation was charged at 58,442 right so should not the statment of financial position reflect the right to use amount less depreciation charged i.e. 233,766. If not then what would be the credit entry against deprecation amount charged.
2. The question asked amounts to be recognized as of 31 March 20x8, but in the answer, the figures reflected in the balance sheet were calculated as far as 31 March 20x9.
I know i am missing something silly but just cant figure out.
1. In the statement of profit and loss depreciation was charged at 58,442 right so should not the statment of financial position reflect the right to use amount less depreciation charged i.e. 233,766. If not then what would be the credit entry against deprecation amount charged.
2. The question asked amounts to be recognized as of 31 March 20x8, but in the answer, the figures reflected in the balance sheet were calculated as far as 31 March 20x9.
I know i am missing something silly but just cant figure out.