Lease Period 5 Years

Lease Contract Value 50,000

PV of Lease Contract $44,518.22
Discount Rate 4% Representing the borrower's incremental borrowing rate if the implicit rate d
Installment 10,000 P.a

Payments Schedule
Period Beg Balance Installment Principal Interest
1 44,518 10,000 8,219 $1,780.73
2 36,299 10,000 8,548 $1,451.96
3 27,751 10,000 8,890 $1,110.04
4 18,861 10,000 9,246 $754.44
5 9,615 10,000 9,615 $384.62

Balance Sheet
Right of Use Asset $44,518.22 35,614.58 26,710.93 17,807.29
Less; Amortization $8,903.64 $8,903.64 $8,903.64 $8,903.64
Ending Balance 35,615 26,711 17,807 8,904

Lease Obligation $44,518.22 $36,298.95 $27,750.91 $18,860.95

Less: Principal Repayments 8,219 8,548 8,890 9,246
Ending Balance 36,299 27,751 18,861 9,615

Income Statement
Amortization Expense $8,903.64 $8,903.64 $8,903.64 $8,903.64
Interest Expense $1,780.73 1,451.96 1,110.04 754.44
Total Expense $10,684.37 $10,355.60 $10,013.68 $9,658.08

Right of Use Asset $44,518.22 $35,614.58 $26,710.93 $17,807.29

Lease Obligation $44,518.22 $36,298.95 $27,750.91 $18,860.95
Difference $0.00 ($684.37) ($1,039.98) ($1,053.66)

Cash Balance
Non Cash Items $10,684.37 $10,355.60 $10,013.68 $9,658.08
Installments Paid (10,000) (10,000) (10,000) (10,000)
Cash Balance $684.37 $355.60 $13.68 ($341.92)
 Initial Recognition
Right of Use Assets $44,518.22
Amortization $8,903.64
Lease Obligation $44,518.22
ntal borrowing rate if the implicit rate don't exist in the lease contract
9.25%

End Balance Period Beg Balance Installment Principal Interest

36,299 1 19,998,237 5,940,632 3,452,119 2,488,513
27,751 2 16,546,118 5,940,632 4,410,116 1,530,516
18,861 3 12,136,002 5,940,632 4,818,052 1,122,580
9,615 4 7,317,950 5,940,632 5,263,722 676,910
- 5 2,054,228 2,244,245 2,054,228 190,016

8,903.64
$8,903.64
-

$9,615
9,615
-

Totals
$8,903.64 44,518.22 Representing The Right to use these Asset
384.62 5,481.78 Diffference between the PV of Lease Contract and Contract Value
$9,288.26 50,000.00 Representing the value of contract

$8,903.64
$9,615.38
($711.74)

$9,288.26
(10,000)
($711.74)
 End Balance
16,546,118
12,136,002
7,317,950
2,054,228
-

ntract Value