Start date: January 01, 2020 Discount rate : 5% Initial direct costs of lessee: Rs 20,000 Lease incentives : Rs 5,000 Annual Lease payment at the end of each year: Rs 50,000 Lease Term : 10 years Lease liability initial recognition? ROU asset Initial recognition? Pass Journal entries for initial recognition of asset and liability! Lease liability schedule ROU asset if depreciated on straight line basis - year 1 of depreciation schedule