Lease premium write offs | AccountingWEB

Lease premium write offs

Hi everyone,

Do you know if I should treat "lease premium received for sub-let" in the following case as "lease premium write offs"?

ABC Ltd paid an annual rent for the year to 31 March 2012 of £8,800 for Windermere property, but did not pay a premium when the lease was acquired. It has been sub-let during 2012. Windermere property, a Leasehold office building, has been sub-let from 1 April 2011 to a new tenant who has paid a premium of 28,000 for the grant of an 8-year lease and pays ABC Ltd annual rent of £6,000 which was payable in advance.

I would appreciate very much if you can help me with this!



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blok |
blok's picture

Thank your for your comment.

kutar2753 |