This accounting for capital leases calculator will help a business to produce the monthly accounting journals required to record capital leases.
The rental payments on a capital lease are split between principal and interest when posted to the accounting records. As the lease liability reduces each month the interest will reduce and the principal / interest split changes.
Our tutorial on capital lease accounting gives full details about how to account for capital leases.
The Excel sheet, available for download below, will help you calculate the principal / interest split for a given accounting period, and provide the accounting journals needed to post the asset and associated depreciation, the lease liability, and the rental payments.
Accounting for Capital Leases Calculator Download
The accounting for capital leases calculator is available for download in Excel format by following the link below.
Users use this accounting template at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an accounting format that you might use. It is purely illustrative. This is not intended to reflect general standards or targets for any particular company or sector. If you do spot a mistake in the template, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.