Leasing a vehicle

RubeRube Member Posts: 4

I am leasing a vehicle for the next 4 years so have a long term liability for the payments. I can’t find instructions on how to add this. I have added the account under chart of accounts. I now assume that I create a bill for the whole lease balance. But the long term liability doesn’t come up as an expense category.

Comments

  • RubeRube Member Posts: 4

    Ok, I think I have worked it out. I have done a journal transaction and added a credit of the lease amount and then debited the same amount from owners equity. Now I just need to sort out the GST side of things.

  • AlexiaAlexia Administrator Posts: 3,315 admin

    Seems like you're on top of everything, @Rube!

    Let us know if you have any other questions!

  • A2AA2A Member Posts: 1

    Hello,

    Can you please provide the step by step instructions on how to do this ?

  • RubeRube Member Posts: 4
    I spoke to my accountant and he said not to do it the way I had done it but record it as a bill each time the payment came out, similar to paying an electricity bill. The reason is that, although I am tied in to the lease, I can technically break that agreement and give the vehicle back.
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