Murti Finance and Leasing (MFL) buys passenger vehicles and gives these passenger vehicles on lease to corporate clients. It purchased 10 cars costing ₹6,00,000 each on April 1, 2007 and provided these cars on lease for a period of two years to one of its client Jims International (JI) by incurring direct costs ₹30,000 attributable to the lease agreement. Each car is estimated to realize a salvage value of ₹1,20,000 at the end of the economic life of 6 years. JI will be charged a lease rent of ₹1,25,000 per annum per car to be paid at the end of each of the year. The cars are subject to straight line depreciation method. Show how MFL should recognize these cars in its financial statements.