In the Books of Lessor

[Ali Akbar]

AOA

Lessor will make the entry opposite to that which the lessee do, that is to say
LESSOR
Lease payment recievables (Dr)
Asset (Cr)

Likewise other entries will be
Cash (Dr)
Interest income (Cr)
Lease payment recievables(Cr)

LESSEE
Asset (Dr)
Obligation under finance (Cr)
lease (UFL)

Interest exp (Dr)
Obliigation UFL (Dr)
Cash (Cr)

However the entries will be slightly different when the installment is payable in advance.

Hope ur question is answered.

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