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Working Notes
1. Calculation of Present value of lease payments as at commencement date i.e., 1st April, 20X1
Year Payments (Cash Discounting Factor Discounted Cash
flows) @10% flows / Present Value

31 Mar 20X2 2,00,000 0.9091 1,81,820
31 Mar 20X3 2,00,000 0.8264 1,65,280
31 Mar 20X4 2,00,000 0.7513 1,50,260
6,00,000 4,97,360

2. Lease Liability Schedule:
Year Opening Interest Expense @ 10% Payments Closing
31 Mar 20X2 4,97,360 49,736 (2,00,000) 3,47,096

31 Mar 20X3 3,47,096 34,710 (2,00,000) 1,81,806
31 Mar 20X4 1,81,806 18,194* (2,00,000) -

*Difference is due to approximation

3. Calculation of ROU asset as at transition date i.e., 1st April, 20X3
Year Opening Depreciation Closing
31 Mar 20X2 4,97,360 (1,65,786) 3,31,574

31 Mar 20X3 3,31,574 (1,65,787) 1,65,787
31 Mar 20X4 1,65,787 (1,65,787) -

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