I think that you mean finance leases. When a company enters into a finance lease, the risks and the rewards for the asset have been transfer so you have an asset which you have essentially purchased and a liability to repay the finance lease. So, to answer your question, finance leases are in the balance sheet.
The capital leases or the finance leases are indeed on the balance sheet. The operating leases are reported on the income statement and the necessary disclosure is provided in the notes of the accounts. But yes it’s correct, the capital leases need to be reported on the balance sheet.
The accounting standard say that although the legal nature of the contract might say that it’s a lease, the economic reality might indicate that the asset is actually owned by the business. Therefore, if the lease is considered a capital lease, then it will be reported on the balance sheet and will be depreciated over it’s useful life.