Operating Lease

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Posted by geemiz | Posted in Practical Accounting 1, Theory of Accounts | Posted on 12-03-2011

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Lease

A lease is an agreement between two parties, the lessor and the lessee. The lessee is given the right to use a certain property that is owned by the lessor for a specific period of time. In return the lessee will pay an amount to the lessor called rent.

Two Kinds of Lease

Operating Lease

  • This is the most Popular rental approach
  • The periodic rental is recognized as rent expense on the part of the lessee and rent income on the part of the lessor.

Finance Lease

  • This is actually a lease purchase.

Bank Reconciliation Formula

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Posted by geemiz | Posted in Practical Accounting 1 | Posted on 17-11-2010

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One statement being made before computing the total amount of cash both on hand in bank is the statement of bank reconciliation. This statement is not one of the basic financial reports that every company must make annually but this statement is necessary to reach the true amount of cash. This article is not intended to discuss about Bank Reconciliation because this was discuss in a different page. This write up is consist of the lists of formulas being used in computing for adjusted cash on hand or in bank, the total amount of outstanding check and the total amount of deposits in transit.