Page 10 - PowerPoint Presentation

Special Inclusions (Lease Premiums)

• Received by a lessor from a lessee in addition to rent.

• Lessor and lessee relation must exist.

• It is a payment from the lessee to the lessor for the

right of use of lessors property.

• The payment can be in cash or other wise but should

have a monetary value.

• Example = If a lessor agrees to rent his machinery to

the lessee for a lump sum of 200 000 in addition to

the rent of 30 000. Answer = The 200 000 = Lump

sum = GI.

• How about a sub lessor(Principal lessee) to a sub

lessee?
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