Buhari Ltd acquired a machinery on lease on 01^st April 2018. The following further information are available:

Initial payment 01^st April 2018 Rs.650, 000

Annual lease rental Rs.145, 000

Lease term 4 years

Initial direct costs Rs.70, 000

Implicit Interest rate in the lease contract 6%

Annual discount factors at 6%

Year	1	2	3	4
Discount factor	0.9433	0.8899	0.8396	0.7920

At the end of the lease term, ownership of the asset will transfer to lessee.

Residual value of the machine is Rs.48, 500 and the useful life time of the machine is 6 years.

The balance of right to use an asset as at 01/04/2018 is Rs: 1,222,396Rs: 572,396Rs: 1,152,396 and the balance in right to use asset as at 31/3/2019 is Rs: 1,026,747Rs: 956,747Rs: 376,747 .