Access Point acquired an asset under a finance lease. The fair value of the asset was £440,000 and it is estimated that the residual value after 5 years will be £20,000. The lease is for 5 years. Lease payments are £50,000 per half year and are paid in advance. The lease commences on 1 January 20X8. The interest rate implicit in the lease is 2.96 per cent per half year.

Required: 

Prepare extracts of the financial statements for the years ended 31 December 20X8 and 20X9.