Indian Leasing by Vinod Kothari
Examples on Calculation of Capital Recovery and Lease equalisation
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CASE 3: RESIDUAL VALUE |
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ASSET COST |
1000 |
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RENT |
284 |
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YEARS IN LEASE |
5 |
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ACCOUNTING IRR |
24.00% |
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FINANCIAL IRR |
24.49% |
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LMF |
1.00% |
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DEPRECIATION RATE |
11.00% |
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RESIDUAL VALUE |
10.00% |
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|
YEAR |
LEASE RENT |
INV.O/S |
FIN CRG. |
CAP. REC. |
DEPRN. |
LEA |
LTA |
|
1 |
284 |
1000 |
172 |
112 |
110 |
2 |
2 |
|
2 |
284 |
888 |
145 |
139 |
110 |
29 |
30 |
|
3 |
284 |
750 |
112 |
172 |
110 |
62 |
92 |
|
4 |
284 |
578 |
71 |
213 |
110 |
103 |
196 |
|
5 |
284 |
364 |
19 |
264 |
110 |
154 |
350 |
|
900 |
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PROFIT AND LOSS A/C |
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DEBITS |
YEAR 1 |
CREDITS |
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|
DEPRN. |
110 |
LEASE RENT |
284 |
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|
NET CREDIT |
172 |
LESS: LEA |
2 |
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|
282 |
282 |
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YEAR-WISE VIEW OF P & L ACCOUNT |
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|
YEAR |
CREDIT |
REDN. |
DEBITS |
NET |
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|
LEASE |
LEA |
DEPRN. |
CREDIT |
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|
RENT |
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|
1 |
284 |
2 |
110 |
172 |
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|
2 |
284 |
29 |
110 |
145 |
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|
3 |
284 |
62 |
110 |
112 |
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|
4 |
284 |
103 |
110 |
71 |
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|
5 |
284 |
154 |
110 |
19 |
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BALANCE SHEET |
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|
ASSETS |
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|
FIXED ASSET |
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|
COST |
1000 |
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LESS: DEPRN. |
110 |
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|
LESS: LTA |
2 |
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|
888 |
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|
YEAR -WISE VIEW OF BALANCE SHEET |
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|
YEAR |
FIXED |
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|
ASSET |
NET |
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|
COST |
DEPRN. |
LTA |
VALUE |
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|
1 |
1000 |
110 |
2 |
888 |
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|
2 |
1000 |
220 |
30 |
750 |
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|
3 |
1000 |
330 |
92 |
578 |
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|
4 |
1000 |
440 |
196 |
364 |
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|
5 |
1000 |
550 |
350 |
100 |
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