Question 2 Boney plc is a small listed company, operating physiotherapy practices across Devon and Cornwall. Boney plc entered into a contract with Rub Limited for the lease of 100 treatment benches. Each bench is considered to be an identified underlying asset. The commencement date of the lease is 1 April 20X5 and Boney plc paid legal costs relating to setting up the lease of 2 203 on this date. The lease agreement is for a period of three years and requires total lease payments in arrear as follows: Date 31/03/X6 10 000 31/03/X7 11 000 31/03/X8 12 000 The estimated useful life of the benches is three years with no residual value. Boney plc's incremental borrowing rate is 10%. The following present value (PV) table is provided: Present value of 1 in one year, discounted at 10% Present value of 1 in two years, discounted at 10% Present value of 1 in three years, discounted at 10% Present value of annuity in arrear of 1 for three years, discounted at 10% PV factor 0.9091 0.8264 0.7513 2.4868 The financial year end of Boney plc is 31 March Assume that the low value asset exemption of IFRS 16 Leases is applied. Required: Prepare the journal entries in relation to the lease contract in the accounting records of Boney plc for the years ending 31 March 20X6 and 20X7 only