ABC Ltd entered into a lease arrangement to use a machinery for five years on...
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Accounting
ABC Ltd entered into a lease arrangement to use a machinery for five years on 1 January, 2019. The annual rental agreed is GH15,000, payable at the start of each year. The first rental payment was thus paid on 1 January 2019. The implicit interest rate estimated for the lease is 10%. The accounting year-end of ABC is 31 December. Required: How should ABC Ltd account for the above in its financial statements over the lease term
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