Serpea Leasing Sdn Bhd enters a lease with a client for the latter's use of an...
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Serpea Leasing Sdn Bhd enters a lease with a client for the latter's use of an item of machinery. The following details relate to the lease agreement: • Fair value of the machinery: RM100,000 • Residual value: Lease payments: Nil after 5 years RM25,000 per annum payable in advance, the first payment due on 1 January 20x1. Required: Show how the lease transaction above would be recorded in the ledger accounts of Serpea Sdn Bhd. Serpea Leasing Sdn Bhd enters a lease with a client for the latter's use of an item of machinery. The following details relate to the lease agreement: • Fair value of the machinery: RM100,000 • Residual value: Lease payments: Nil after 5 years RM25,000 per annum payable in advance, the first payment due on 1 January 20x1. Required: Show how the lease transaction above would be recorded in the ledger accounts of Serpea Sdn Bhd.
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