 Let's have another practical question. A limited acquired machine for five years lease, the lease installment of 26,380 is given you the installment's amount, but he has not given you the value of the asset. Payable in advance, that is also important, that you are making payment in advance beginning of the year. The implicit rate is 10% and depreciation is straight line and no residual value. So we need to work it out first of all, lease liability. Now the first payment you made on 1st January 2019, 26,380 and the remaining four payments 26,380 by the factor of four years factor, although the lease is five years but the factor will be used for four years because one paid already. So 26,380 plus 83,620, our total lease liabilities are 110 and this is going to be our right of use assets. So sometime asset use value is given and sometime we need to work it out. Right of use, since there is no direct cost or incentives, therefore the value of right of use asset is 110,000 and depreciation per annum will be 110 divided by 522,000. Amortization schedule, again these columns are important, which one should be number 1,2,3,4,5,6 because that will decide how to report in the income statement and balance sheet. Now look here, our liability lease are 110 and we are making a payment in advance, so that is our liability reduces, that is the balance. So interest will be on this figure, 10% of this figure and now our total liability comes to this. Now it becomes the opening balance, again we make a payment and this is a balancing figure of liability and again interest on it and so on, we just take it 21, then 22 and same. Again you will see the interest here in case of 2000, which is again a round figure we have taken. So again total payment you made 26,380 by 5 comes to 131,900 and the lease assets you acquired 410, so the balance is the interest you paid and if you take two things together 21,900 plus 110 is comes to your lease payment and you paid off. Now let's see how it will be recorded in income statement and balance sheet, again less is book only. Depreciation 22,000 and now I am paying 2 years, 19 and 20, you can prepare all 5 years but let's have just 2 years. So depreciation expense remains the same for both years 22,000, 22,000 but the finance charge is going to be different. Why? Because you are making payment of your liability, so your liability reducing, that's why your interest rate, interest amount is also reducing. In the balance sheet property, plant and equipment 110 and first year depreciation is 22 accumulated, the second year you will have 2 years, 22 plus 22,44 and carrying amount is 88 and 66, non-current liabilities and the current liability, current liabilities since you are going to pay in the beginning of the year, that's why the total installment amount paid, the amount of installment that is 26,380 is your current and the balance is your long term, similarly in 2020 the current is going to be the same and the balance is your long term, so it's not something which is very difficult but make sure these columns which we prepare for amountization schedule are important. From there you can work it out, what is current and what is non-current, total will remain the same but how to report it, that which one is goes to the current liability and which is going to be the current and long term liability, so that is how the basic requirement of the questions that how we report in income statement and the balancing, these are the extract again I am talking about and plus please don't forget we are recording 2019, it should be properly name of the company and the period that is 31st December 2019, so these are the extract not the actual balance sheet, only the lease assets or lease liabilities how they will be reported in the main balance sheet and main income statement, so these are just figures for the sake of balance sheet and income statement, thank you very much.