Question
MNO Ltd leases an asset as a lessee. The lease agreement is for 6 years. Lease instalments of R145 545 made at the beginning of
MNO Ltd leases an asset as a lessee. The lease agreement is for 6 years. Lease instalments of R145 545 made at the beginning of the period and interest rate is 9%. The commencement of the lease is 1 April 2021.
Asset is depreciated over 4 years. The tax rate is 28%. Lease payments are allowed as a deduction when paid. Profit before tax is R600,000
- Journalize the transactions for the year ended 31 December 2021 (Journal narrations are required)
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Cost Accounting
Authors: Jawahar Lal, Seema Srivastav
6th Edition
9353168384, 978-9353168384
