Indian Leasing by Vinod Kothari
Examples on Calculation of Capital Recovery and Lease equalisation
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CASE 4: SECURITY DEPOSIT |
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ASSET COST |
1000 |
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RENT |
274 |
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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 |
0.00% |
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SECURITY DEPOSIT |
10.00% |
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YEAR |
LEASE RENT |
INV.O/S |
SEC. DEP. |
FIN CRG. |
CAP. REC. |
DEPRECN. |
LEA |
LTA |
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1 |
274 |
1000 |
100 |
150 |
124 |
110 |
14 |
14 |
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2 |
274 |
876 |
100 |
120 |
154 |
110 |
44 |
58 |
|
3 |
274 |
722 |
100 |
83 |
191 |
110 |
81 |
139 |
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4 |
274 |
531 |
100 |
37 |
237 |
110 |
127 |
266 |
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5 |
274 |
294 |
100 |
-19 |
294 |
110 |
184 |
450 |
|
1000 |
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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 |
274 |
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NET CREDIT |
150 |
LESS: LEA |
14 |
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|
260 |
260 |
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YEAR-WISE VIEW OF P & L ACCOUNT |
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YEAR |
CREDITS |
REDN. |
DEBITS |
NET |
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LEASE RENT |
LEA |
DEPRN. |
CREDIT |
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1 |
274 |
14 |
110 |
150 |
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2 |
274 |
44 |
110 |
120 |
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3 |
274 |
81 |
110 |
83 |
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4 |
274 |
127 |
110 |
37 |
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5 |
274 |
184 |
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 |
14 |
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|
876 |
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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 |
14 |
876 |
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2 |
1000 |
220 |
58 |
722 |
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3 |
1000 |
330 |
139 |
531 |
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4 |
1000 |
440 |
266 |
294 |
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5 |
1000 |
550 |
450 |
0 |
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