Thari Limited leased equipment it uses in its factory on 1 April 2019. The terms of the lease require that Thari Limited pay a deposit of P57,500 which is a non-refundable. This will be followed by annual instalments of P200,000 for seven years payable in arrears. The cost of the right-of-use asset (equivalent to the present value of lease payments) on 1 April 2019 is P1,000,000. The interest rate implicit in the lease is 11%. Required Calculate the interest charge in the statement of profit or loss and the lease liability in the statement of financial position for the year ended 31 March 2020. Show the relevant extracts in Thari Limiteds books.