Page 7 - 6. COMPILER QB - INDAS 116
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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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