809 – Lease & Rental Income

Additions To Income

Synopsis

Account 809

Debits

Credits

  1. Any loss resulting from the sale of rental vehicles when removed from service.

  2. Any loss resulting from sale of lease vehicles when removed from service.

  1. All revenue related to vehicle rental activity

  2. All revenue related to lease vehicles in service.

 

 

Remarks:

Vehicles placed in rental service should be recorded as inventory transfers, not as vehicle sales (refer to Lease/Rental Vehicles (Account 264)).  Units retired from rental service should be transferred to the used vehicle inventory at estimated wholesale value (plus estimated reconditioning costs) and any variance from the net book value should be included in this account.  It is recommended that a rental vehicle record form be maintained.

 

The two basic type leases are open end and closed end, either of which might or might not include maintenance.  Vehicles placed in leasing service within the retailer operation should be recorded as inventory transfers, not as vehicle sales (refer to Lease/Rental Vehicles (Account 264)).  New vehicles sold to a separate leasing organization, independent or retailer operated, should be recorded as fleet sales.  Units retired from retailer operated leasing service should be transferred to the used vehicle inventory.  Such transfers should be made at estimated wholesale value (plus estimated reconditioning costs) with any variance from net book value recorded in this account.  It is recommended that a lease vehicle record form be maintained.