We have several leases, when they are set up in the chart of accounts, under Long Term Liability, do I enter the total amount of the lease after all payments are made? or just the original amount of the lease, without the interest?
submitted by Valerie

learnit

When you set up a lease in your books, you record the initial amount you owe. That's usually the lease's starting value (or the present value of future payments). The interest part isn't included in that initial number. That gets separated out later as you make payments.

spockton

You only put down the original lease amount in your chart of accounts, not the total you'll pay over time. The interest is handled separately, so your initial setup just shows the actual lease value at the start.

Bware_Wheelers

The total paid after all payments, including interest, isn't used for the initial entry. Instead, over time, you'll amortize the liability as payments are made.