Taseer Construction Company needed a Mini Excavator for its project. The Project Engineer suggested that instead of hiring the machine on hourly rent they should purchase their own machine through finance lease as the machine is going to be utilized in upcoming projects also. The company approached the XYZ Importers (Pvt.) Ltd, for leasing the machine. The XYZ Importers (Pvt.) Ltd agreed to lease the machine on 5 years lease period with annual installment to be paid at the end of each year. The deal occurred on 1st January 2012. The price of the machine was Rs 10,000,000. The rate of interest was fixed as 14%. The machine has a useful life of 30,000 hours. The depreciation is to be charged on units of output method. According to the Project Engineer the machine is expected to be utilized 2,500 hours per years on average. Please ignore salvage value. The machine cost Rs 8,500,000 to the importer. Required: 1. Construct amortization schedule for 5 years lease period. 2. Journal entries to be recorded on the books of both the lessor and lessee. Entries for depreciation are also to be recorded.