Page 7 - 6. COMPILER QB - INDAS 116

Table showing amortised cost of lease liability
Year Opening balance Interest @ 9.5% Rental paid Closing balance

1 3,51,613 33,403 56,000 3,29,016
2 3,29,016 31,257 56,000 3,04,273
Difference of Rs. 22,854 (3,27,127 – 3,04,273) will increase the lease liability with corresponding
increase in ROU Asset as per para 39 of Ind AS 116.

Journal entry at the beginning of year 3 would be:

Right-of-use asset Dr. Rs. 22,854
To Lease liability Rs. 22,854

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