Question

A company took a lease of a colliery on 1stApril, 2013 at a minimum rent of 9,000 merging into a royalty50 paise per tonne with a power to recoup short-workings over the first three years of lease. The output of thecolliery for the first three years was 12,000; 19,000 and 21,000 ton respectivelyDraft the necessary journal entries in the books of the company and show Short-workings: Minimum Rent arRoyalties Accounts.Timecouped S.W 1000 in 90,​

Answer 1

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