Question

Following information's are provided by the Sigma
mines which has taken a cost field for extracting coal
for 20 years period:
1) Rate of royalty= Rs. 75 per
ton
2) Minimum rent = Rs. 10,000 per year
3) Short working can be recouped during first 4
years
4) Output:1994
8,000 tons
1995
10,000 tons
1996
16,000 tons
1997
20,000 tons
1998
10,000 tons
Prepare necessary ledger accounts in the books of
lessee.​

Answer 1

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