Illustrative
example
–
Finance
Lease
–
Lessee
with
end
payment
COST
INCLUSIVE
VAT
114,000
VAT
=
14,000
LEASE
PERIOD
3
USEFUL
LIFE
3
YRS
INTEREST
RATE
15%
RESIDUAL
PAYMENT
(10,000)
(Balloon
payment)
LEASE
REPAYMENT
(47,050)
INITIAL
DIRECT
COSTS
3,000
Ex
VAT
INTEREST
INSTALMENT
CAPITAL
AMORT
TABLE
OPENING
(INT)
(PMT)
(PRN)
CLOSING
31
December
20X0
114,000
17,100
(47,050)
(29,950)
84,050
31
December
20X1
84,050
12,608
(47,050)
(34,442)
49,608
31
December
20X2
49,608
7,442
(47,050)
(39,608)
10,000
31
December
20X2
10,000
-‐
(10,000)
(10,000)
0
(0)
37,150
151,150
114,000
example
–
Finance
Lease
–
Lessee
with
end
payment
COST
INCLUSIVE
VAT
114,000
VAT
=
14,000
LEASE
PERIOD
3
USEFUL
LIFE
3
YRS
INTEREST
RATE
15%
RESIDUAL
PAYMENT
(10,000)
(Balloon
payment)
LEASE
REPAYMENT
(47,050)
INITIAL
DIRECT
COSTS
3,000
Ex
VAT
INTEREST
INSTALMENT
CAPITAL
AMORT
TABLE
OPENING
(INT)
(PMT)
(PRN)
CLOSING
31
December
20X0
114,000
17,100
(47,050)
(29,950)
84,050
31
December
20X1
84,050
12,608
(47,050)
(34,442)
49,608
31
December
20X2
49,608
7,442
(47,050)
(39,608)
10,000
31
December
20X2
10,000
-‐
(10,000)
(10,000)
0
(0)
37,150
151,150
114,000
