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On 1 April 20X8 Hop entered a two-year lease agreement for a photocopier and on that date made a payment of £1,000. The second payment is due on 1 April 20X9 which is £2,000. This has been classified as a low value asset. The £1,000 has been recorded as Dr Administration expenses, Cr Bank.

On 1 April 20X8 Hop entered a two-year lease agreement for a photocopier and on that date made a payment of £1,000. The second payment is due on 1 April 20X9 which is £2,000. This has been classified as a low value asset. The £1,000 has been recorded as Dr Administration expenses, Cr Bank.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 1 April 20X8 Hop entered a two-year lease agreement for a photocopier and on that date made a payment of £1,000. The second payment is due on 1 April 20X9 which is £2,000. This has been classified as a 'low value asset'. The £1,000 has been recorded as Dr Administration expenses, Cr Bank.
Transcribed Image Text:On 1 April 20X8 Hop entered a two-year lease agreement for a photocopier and on that date made a payment of £1,000. The second payment is due on 1 April 20X9 which is £2,000. This has been classified as a 'low value asset'. The £1,000 has been recorded as Dr Administration expenses, Cr Bank.
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