Question No.02 A lease was signed on January 1,2015 for four years. Annual rentals payable at end of each year were agreed at Rs. 13,000. In addition to annual rentals lessee pays Rs. 500 annually for insurance. Useful life of equipment was 4 years and interest rate implicit in the lease was 20%. Fair value of equipment was Rs.36,000 Residual value guaranteed by the lessee was Rs.1,500. The assets revert back to lessor at end of lease period. Instructions: Marks (15+05) (a) In the books of lessee prepare journal entries to record acquisition of equipment and annual depreciation. (Necessary working required) (b) Compute annual charges to profit and loss account.