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23-10-2022
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PMB Pty (Ltd) leases a laptop from Computer Inc for a period of 24 months. This lease qualifies as a lease of a low value asset, and thus qualifies for the recognition exemption. PMB Pty (Ltd) chooses to apply the recognition exemption to this lease. The lease payment is R1000 per month for the first year (2020) and R1300 per month for the second year (2021). The lease commenced on 01 April 2020. PMB Pty (Ltd) has a 31 December year end. Required: Show the journal entries in PMB Pty (Ltd)’s general ledger.

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