Can you please help me. I need some advice on how to determine the Long Term Portion (LTP) on vehicle lease agreement. I am new at this sort of entries and would really like to know how to do the entry.
I received the amortization schedule from the bank with the following:
total for current period: Capital R16172.63 , finace charges R7766.75 and Finance Adjustments R201.86 - As far as I could work out the Finance charges that I can enter for the current period is R7766.75 less the adj of R201.86 = R7564.89. Am I correct?
But further than that I really am feeling quite helpless.
Amounts due next 12 periods: Capital r17995.52, finance Charges R5828.72 and finance Adjustments R147.92.
Then there is another line: Amounts due thereafter: 28 installments: Capital R49701.32, Finance Charges R5825.21 and finance Charge adj - R408.51.
Will really appreciate your help. What is the meaning of Long term portion?