Interest entry of financial lease
Financial leasing means that the lessor purchases the leased property from the supplier and rents it to the lessee according to the specific requirements of the lessee and the choice of the supplier. The lessee pays the rent to the lessor by installments. During the lease period, the ownership of the leased property belongs to the lessor, and the lessee has the right to use the leased property. For financial lease interest, the following accounting entries can be made:
Borrow: fixed assets, projects under construction.
Unconfirmed financing expenses
Loans: long-term payables
bank deposit
When paying on time:
Debit: Long-term payables-financing lease payable
bank deposit
Amortization of unconfirmed financing expenses:
Debit: financial expenses
Loan: unconfirmed financing expenses.
Unconfirmed financing cost generally refers to the fact that an enterprise chooses to pay by installments when purchasing assets due to insufficient existing funds, resulting in the actual payment amount being greater than the purchase value of assets, and the difference between them is the financing cost caused by delayed payment. Since this expense is incurred during the whole payment period, it should be shared in the whole period according to a reasonable sharing rate.
What is long-term payable?
Long-term payables refer to long-term payables, while long-term payables in accounting business refer to other long-term payables except long-term loans and bonds payable. It mainly includes the payment for imported equipment for compensation trade and the rental fee for transferring financial leasing to fixed assets.