equipment lease (rental) entry

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I'm a new sage user and 'am having some trouble. My husband has recently started a new corporation, from april-dec he leased (rented) a truck/tools (welding rig). the truck was never in his name, it was more like a rental (invoices say lease). where and how would i record these invoices and payments? we used bank transfers to make  payments.

Any help will be greatly appreciated!

Joanne

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  • 0

    Hi,

    There are two types of leases - one is like a rental, the other is considered to be like a loan.

    If it was April through December, and the ownership won't likely ever be transferred, then the payments are accounted for in the same way as if it was a rental.

    If that's the case, the rental payments are 100% rental expense (you may want a separate accounts for building, and equipment / vehicle rental) and Sales Tax and you can enter them as a purchase invoice.

    If you're not sure about whether the unit is a rental or more of a lease-to-purchase, you should contact your accountant to see how this should be booked.

    I hope that helps,

    Randy

  • 0 in reply to RandyW

    ok great. and for the rental account, what type of account would i create? group account or subgroup account?

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