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discounting of a provision as per AS 29 and unwinding concept in detail

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a company installed a machine in rented factory whose life 4 years as per rent agreement machine should be decommissioned and factory should be brought to original position. To restore factory into original position company should incur Rs. 200000 at the end of 4 th yearif govt. yield rate 6 % which accounting entries are to be made ?
Replies (1)
Invest Rs. 158418
Investment dr.
To Bank

You will receive interest from 1 to 4 years which will be accumulated in investment.
Investment Dr
To Interest

At the end of 4th year you will get 200000
Bank dr
To Investement


Note: Treatement will differ if it is accounted as per AS 30,31,32 or Ind As 109


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