Lease liability amortization schedule and journal entries: Urdu | Hindi

Lease liability amortization schedule and journal entries: Urdu | Hindi
The lease liability is calculated as the present value of the lease
payments. Three things are required to calculate the present value of the lease payments:
1. The amount of each lease payment
2. The lease term
3. The discount rate
Lease payments include:
(a) fixed or variable payments
(b) amounts payable under a residual value guarantee
(c) the bargain purchase price
When it comes to the discount rate, the lessee should use the lessor’s implicit interest rate. If the lessee doesn't know the lessor's implicit interest rate, the lessee should use the lessee's incremental borrowing rate as the discount rate