In: Accounting
Initial value of lease liability as on January 1,2017=515419
Calculations for same:-
Year | Lease Rentals p.a | Discounting factor @ 8% | Present value of lease rentals |
1 | 200000 | 0.925925926 | 1,85,185 |
2 | 200000 | 0.85733882 | 1,71,468 |
3 | 200000 | 0.793832241 | 1,58,766 |
Present value of lease liability as on January 1,2017 | 5,15,419 |
Value of lease liability at the end of 2017=356653
Calculations for same:-
Amortization table:- | ||||
Year | Opening lease Liability | Interest @ 8% | Repayment | Closing lease liability |
1 | 5,15,419 | 41,234 | 2,00,000 | 3,56,653 |
2 | 3,56,653 | 28,532 | 2,00,000 | 1,85,185 |
3 | 1,85,185 | 14,815 | 2,00,000 | - |