If a debt service fund is used,capital lease payments for general capital assets should be recorded by a debt service fund rather than the fund using the leased asset.

Question

Quizplus · Accepted Answer

Payments required by capital leases are merely installment payments of general long-term debt and interest on the unpaid debt; it is logical to record such payments in a debt service fund rather than in the fund using the leased assets.

If a Debt Service Fund Is Used,capital Lease Payments for General