Real Estate
IFRS 16 Monthly Lease Payment Split
Splitting the monthly lease payment between principal reduction and interest expense.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interest Expense (Lease) | Expense (+) | 2,500.00 | - |
| Lease Liability (Principal) | Liability (-) | 7,500.00 | - |
| Cash / Bank | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
Each lease payment is split: the interest portion is an income statement expense and the balance reduces the lease liability on the balance sheet.
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