AS 19 LEASE

Accountancy

How to compute INTEREST RATE IMPLICIT i.e., 9.98%, in the books of lessor?

Dhivyaa Latha

CA Inter

★ 4K+

02-May-23 13:55

442

Answers (5)

Best Answer

If you take GRV as 5000, then IRR is 9.98% 0 -60000 1 15000 2 15000 3 15000 4 15000 5 20000

CA Suraj Lakhotia

Admin

03-May-23 10:10

Sir, can you please explain as to how we arrived at this rate, lessor?

Thread Starter

Dhivyaa Latha

CA Inter

★ 4K+

02-May-23 23:14

Its incorrectly calculated. Consider the following cash flows and calculate IRR 0 -60000 1 15000 2 15000 3 15000 4 15000 5 21000

CA Suraj Lakhotia

Admin

03-May-23 10:08

CA Suraj Lakhotia Admin

If you take GRV as 5000, then IRR is 9.98% 0 -60000 1 15000 2 15000 3 15000 4 15000 5 20000

Take approximation at 10% and 9% and compute IRR

CA Suraj Lakhotia

Admin

03-May-23 10:11

CA Suraj Lakhotia Admin

Take approximation at 10% and 9% and compute IRR

Thank you so much Sir.

DHIVYAA DAMODARAN

CA Inter

★ 60

03-May-23 10:54