The Aubrive group leases a fleet of delivery vehicles for 3 years; the commencement date is 1 April 20X1. Monthly lease payments of 2,900 are made in arrears, the first on 30 April 20X1. The finance department measures the present value of the lease payments not yet paid at 96,450. There are no initial direct costs, lease incentives or restoration costs to consider. Record the entry on 1 April 20X1.
- Present value of the lease payments not yet paid
- 96,450
- Monthly lease payment made in arrears
- 2,900