Accounting at the time of signing the contract
Borrowing: Fixed Assets - Fixed Assets under Finance Lease
Taxes Payable - VAT Payable - Inputs
Finance Costs - Handling Fee Expenditure
Unrecognized Financing Costs
Credits: Long-term Payables - Finance Payables (Total Rent + First Rental Amount)
Credits. Long-term Payables - Finance Lease Payable (Gross Rental Amount + First Rental Amount)
Bank Deposit (Handling Fee)
Debit: Long-term Payables - Finance Lease Payable
Credit: Other Receivables
Accounting for Lease Period
Debit: Long-term Payables - Finance Lease Payable
Interest Expense (Finance Fee)
Credit: Unrecognized Finance Costs
Bank Deposits
Debit: Depreciation Expense (Finance Leased Fixed Assets)
Credit: Accumulated Depreciation - Finance Leased Fixed Assets
At the End of Lease Term
Debit: Fixed Assets - Owned
Accumulated Depreciation - Finance Leased Fixed Assets
Credit. Fixed Assets - Finance Leased Fixed Assets
Accumulated Depreciation - Owned