Hire Purchase Lease
We are in the process of finalising a HP agreement with a leasing company.
We have already recognised the asset and the invoice has been paid to the supplier.
we will be selling the assets to the leasing company and leasing it back.
What is the accounting treatment for this transaction.
So we have DR Asset CR Bank
As we are raising a sales invoice to the leasing company, we want to be cautious as we do not want this sale of asset to increase our turnover.
So how do we go about this.
Assets will continue to sit on our balance sheet but somehow we need to recognise a Lease Creditor on our Balance Sheet.
Can you please explain the accounting treatment for this.
- Unknown cash receipt 1,345 12
- Is an iPad a taxable benefit? 39 1
- Shareholder Loan write off 529 25
- RTI "Reason for submission being late" 269 4
- Share restructure 245 8
- CGT on Property 153 1
- Vat on sales invoice which includes expenses 130 3
- What password safe app does anyone recommend? 724 19
- Do you design it or pick what's out there? 328 9
- Gross sales to purchases 201 2
- How best to own a 4-way property partnership 190 3
- Capital allowances 142 2
- RTI Filing 1,371 21
- Loan to a participator 161 4
- Does unpaid share capital attract s455 liability? 374 7
- Import VAT can be set off against output VAT liability or not 113 3
- £2000 Employment Allowance 177 1
- Staff entertaining or not? 365 4
- First RTI P45 214 3
- Shouldn't have filed accounts? 215 2
- Residential Property Purchase Above £750K 713
- Using Sage with Sofa Categories 482
- One man Company and closing payroll scheme as none paid 318
- Does anyone have an unwanted ICAEW wooden plaque? 307
- Goods shipped inter EU and VAT Reporting 255
- growth voucher supplier 227
- Sage 200 and Access Dimensions reviews 191
- VAT on Gaming Machines 188
- transferring simply accounting 2010 from xp to windows 7 161
- Papilio UK Equity Release Mortgages Ltd 161