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Interest on Lease Liability (IFRS 16)
Recording the monthly interest portion of an office lease payment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interest Expense (Lease) | Expense (+) | 450.00 | - |
| Lease Liability | Liability (-) | 550.00 | - |
| Cash / Bank | Asset (-) | - | 1,000.00 |
💡 Accountant's Note
Under IFRS 16, a lease payment is split: one part reduces the principal debt (Lease Liability) and the other part is the interest cost of financing.
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