Hassan co leased a machine to kailash co for 5 years. Its market value is Rs. 320,000 and fair value is Rs. 313,100. The minimum lease payments are Rs. 80,000 and are payable in advance. Its useful life is 6 years and lease term is 5 years. Its salvage value is Rs. 20,000 Requirements: (a) what is present value of minimum lease payments. (b) prepare lease amortization schedule. (c) prepare all journal entries for lessee including depreciation entries (use double declining rate) and entry for dispose of machine. (d) prepare all journal entries for lessor. (e) prepare T-accounts for lease liability, accumulated depreciation for lessee and lease recievable for lessor. (f) prepare depreciation schedule (g) prepare all journal entries for both lessor and lessee assuming this is an operating lease

This is finance lease. kailash co is responsible for maintainance and insurance of the boat.