LEASE – PLS ASSIST CHRIS/JOHN

Hi Chris

Can you please assist, we have a lease agreement whereby we receive an invoice on a monthly basis, in advance for the rental of doctors rooms – amount R20 000. The contract is only for a year – so year on year basis. There is no interest rate stipulated in the contract. How do I account for it. Will we only;

DR Right of Use (with the full contract amount for the year, which is R20 000* 12 = R240 000) and
CR Liability with R240 000.

Then DR Liability on a monthly basis with R20 000 and credit Bank on a monthly basis?

I am not sure if I am missing some of the journals?

Do I leave the interest jnl as there is no interest stipulated and do I still have to do a depreciation/amortization jnl? DR Depreciation and CR Acc Depreciation? (Not sure what amount to use)

Also, Chris the amount is immaterial, although it is for 1 year.
Currently we DR our rental expense account and CR bank, now we have to bring it onto balance sheet.