A lease is an agreement between two parties, the lessor and the lessee. The lessee is given the right to use a certain property that is owned by the lessor for a specific period of time. In return the lessee will pay an amount to the lessor called rent.
Two Kinds of Lease
Operating Lease
This is the most Popular rental approach
The periodic rental is recognized as rent expense on the part of the lessee and rent income on the part of the lessor.
One important process in accounting is what you call bank reconciliation. This is to compare the cash transaction in your cash bank account and the cash balance in your own book. Actually this is a statement to be made monthly showing if the cash balance per ledger account and the cash balance per bank agrees.
Accounting has many definitions and among the very common definition of accounting is it is a system that provides quantitative information about finances and preparing the financial reports of an entity. But different Agencies have its definition of Accounting.
According to the Accounting Standards Council accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions.
It is impossible that a person in the field of accounting, maybe a professional or a student does not know Mr Conrado T Valix. He is a famous accounting instructor, author of several textbooks and reviewers.
