October 30, 2016 admin

Leasing Income Collected in Advance

Liabilities and Net Worth

NON US LEASING INCOME COLLECTED IN ADVANCE LIABILITY ACCOUNT
2465

ACCOUNT EXPLANATION
Leased Contract Income collected in advance supported by Notes Receivable.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Leased contracts income collected in advance supported by Notes Receivable CD
    Notes Receivable 1100
      Leasing Income Selected in Advanced 2465
             
  Monthly write-off leasing income collected in advance CD    
    Leasing Income Collected in Advanced   2465  
      Lease Vehicle Net Income     5300
      Sales and Use Taxes     2150
COMMENTS
  • Usage of this account is limited to the lease contracts supported by Notes Receivable. All other lease contracts should be handled in the normal procedure using inventories and net income accounts.
  • Subsidiary records should support the account balance including the source of the interest, total amount collected in advance, due date and month by month applications to income.
  • At month-end, a schedule should be prepared for management review.
  • Interest income collected in advance is subject to special rules of the Value Added Tax (IVA) payment. Special handling of tax involved on this account may require consultation of tax counsel as necessary.