This is question related to Accounting subject International Accounting Standard 16 (IAS 16 or IFRS16) this is the question:

(i) B son bhd acquired a plant on lease from L son bhd on following terms: Down Payment RM 10,000 Annual Payments (at end of year) RM 20,000 Lease Term 5 years Interest rate implicit in the lease 10% per annum Residual value guaranteed by B son bhd RM 10,000 Estimated residual value at end of lease term RM 15,000 Required: Calculate lease liability for B son bhd