Mr. Ajith has patent of safety locks. He gave the right of manufacture and sale of lock to National Traders for 14 years. Royalty will be at Rs.5 on each lock sold and minimum rent is Rs.100000/year. A/cs are closed on 31st March every year. Sales of lock are as follows: Year- 2014-16000 locks; 2015-18000; 2016-22000: 2017-36000. Open the necessary ale in the books of National traders if the amount of Royalty is less than minimum rent, the deficit which is known as short coming can be recouped in the following 2 years of the year of deficit. Dheel weining short working (floating recoupment, without minimum rent A/c)
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Mr Ajith has patent of safety locks. He gave right of manufacture and safe of lock to national traders for 14 years on the following terms Royalty will be at Rs 5 on each lock sold and minimum rent is Rs 1,00,000 per year . short working will be recouped in the following two year . open the necessary accounts
Year No of locks sold
2016-2017 16,000
2017-2018 18,000
2018-2019 22,000
2019-2020 36,000
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