straight line basis of accounting for lease rental should be followed unless another method of accounting for rental which better reflects the time pattern of use of the leased asset is available.Therefore, in a case involving increasing rental, which in no case can represent a time pattern in which benefit derived from the use of the leased asset is diminished, the only choice one is left with is to adopt the straight-line basis of accounting for lease rental as income. rentals for the first, second and third years are fixed at Rs.75, Rs.100 and Rs.125. The total rental is Rs.300. As per AS-19, the income that will be recognised in each year will be Rs.100 against Rs.75 actually receivable in the first year. This excess Rs.25 recognised as income will appear as an asset and will be adjusted in the third year against the actual income of Rs.125, thus, equalising income in each year.