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If the company purchase Vehicle for Employees Transport on Leasing, But company will not pay anything .Monthly installment will be deducted from Employees salaries and paid to bank. What will be the journal entries...Please
A very good Answer added by: Fahid Malik Accountant 1 day ago
Leasing Liability will be debited and salary expense will be credited in order to reduce the salary expense.
Second way is to deduct installments from employees salary and make a deferred Account and credit this account.
The journal entry for depreciation contains a debit to the income statement account. Expense and a credit to the balance sheet account Accumulated.It is also known as a contra asset account because it is an asset account with a credit balance.
Vehicle leasing is the leasing of a motor vehicle for a fixed period of time at an agreed amount of money for the lease
Alease is along term contract in which the owner of property allows anp=other party to use property for aststed period in exchange for stated payment . this agreement hase to contains for transfere all benefits and risk of the asset to the lesee .
entry #
Dr . assets
cr . lease liability
Dr . lease liability
Cr . transport allowance
