Boba Berhad enters into a non cancellable five year lease agreement with loob holdinh berhard on 1 may 2020 the lease is for a bubble tea machine and the rate of interest impicit in the lease is quated as being 4percent per annum

boba berhard incurs initial direct costs associated with the lease of RM50000.These costs represent the costs that are directly attributable to negotiating and arranging the lease and would not have been incurred without entering the lease.The bubble tea machine is expected to have an economic life of 6 years.There is a bargain purchase option that Boba Berhard will be able to exercise at the end of the fifth year of the lease for RM320000.Boba Berhad is reasonably certain to exercise the bargain purchase option.

Required In accordance with IFRS 16 Leases and from the persective of Boba Berhad standards a.show the journal entries to record the initial recognition of the lease on 1st May 2020 b.Prepare the journal entries for the year ended 30th April 2021.Show all workings including a 5 year lease ammortisation schedule for lease payments. c.Prepare the portion of the financial statement relating to the lease asset and lease liabilty for the year ended 30 april 2021