On 1 April 2020, Endale Ltd (which prepares accounts to 31 March each year) enters into a
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On 1 April 2020, Endale Ltd (which prepares accounts to 31 March each year) enters into a lease of computer equipment. The company is required to make six half-yearly lease payments of £7,674 each and the first payment falls due on 1 April 2020. The rate of interest implicit in the lease is 6% per half-year. Calculate the finance charge which should be recognized as an expense in the company's financial statements for each of the years to 31 March 2021, 2022 and 2023 (prepare a table with one row for each half-year). Also calculate the initial amount of the right-of use asset that should be recognized on 1 April 2020.
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