Question

7.A lease is purchased on 1st April, 2014 for 4 years at a cost of 2,00,000. It is proposedto depreciate the lease by the annuity method charging 5 percent interest. A reference tothe annuity table shows that to depreciate 1 by annuity method over 4 years charging5% interest, one must write off a sum of 0.282012 [To write off 2,00,000 one has towrite off every year 5,6402.40 ie. 0.282012 * 2,00,000)You are required to show the Lease Account for four years (2014-15 to 2017-18) andalso the relevant entries posted to the profit and loss account​

Answer 1

Answer:

Explanation:

1=23453.00.

2=45928.33.

3=29,00,000.