financial accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 January 2011 in accounting.
for providing depreciation ownership is neccesary or not ? What will be if asset taken on lease for 3 months ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 January 2011 In case of finance lease you record the assets in your books and charge depreciation.

If assests taken on lease for 3 months then it is operating lease and lease rent charged to P & L A/c.

Vivek Raju P

Vivek Raju P (Expert)
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19 January 2011 no ownership is not necessary for depreciation in accounting, say finance lease assets. or interiors of a operating lease building.

3 months will always be operating lease and has to be charged to P&L

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