Categorized | Leases

What Journal Entries Do I Need To Make To Convert Operating Leases To Capital Leases?

I know you debit the leased assets and credit the lease obligation, but what about the lease expenses?
Thanks.

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One Response to “What Journal Entries Do I Need To Make To Convert Operating Leases To Capital Leases?”

  1. kalasin1 says:

    Probably Capitalise it by adding it to the cost of obtaining the Asset, or else write it off to the profit and loss account.
    Journal Entry Credit Bank (payments) and Debit Asset account / Lease costs Profit & Loss a/c

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