A question regards the treatment of car lease deposit
We pay a deposit of say£1500 for a new leased car over a term of 3 years. And then onging monthly rental of £400 for the lease again ongoing for three years.
Am I correct that the deposit should be treated as a pre payment and the cost spread over the three years, or as our new accountant said it should be expensed immediately as a sunk cost?
If anyone can help i would greatly appreciate it