Accounting for Leasing

To run a business then we need a lot of capital. Moreover, we also need capital goods to run a business, so that we can run a business smoothly then we need an institution to obtain a business fund, the institution is called leasing. Leasing or lease is any business financing activity in the form of providing capital goods for use by a company for a specified period of time, on a periodical basis of payment accompanied by the right to vote for the enterprise to purchase the capital goods concerned or extend the lease term based on the mutually agreed amount of money. By leasing the company may acquire capital goods by lease purchase to be directly used for production, which can be paid monthly, quarterly or quarterly to the lessor.