Q.15 A colliery Co. has token lease of a coal field on a minimum rent of Rs. 7,500
merging into a royalty of 25 paise per tonne raised. Shortworkings of any year
can be recouped out of the royalties of the next three years. The result of the
working were:
I year- Nil; II year- 6,000 tonne; HI year- 24,000 tonnc, IV year- 50,000 tonne; V
year- 40,000 tonne,
Show the Shortworking A/c, Landlord A/c and Royalty A/c for the five years in the
books of the company.
Answers
Step-by-step explanation:
landlord Account
1st To bank a/c 7500 By shortworking a/c 7500
7500. 7500
2nd To bank a/c 7500 By shortworking a/c 6000
By royalty a/c 1500
7500. 7500
3rd To bank a/c 7500 By shortworking a/c 6000
By royalty a/c. 1500
7500. 7500
4th To bank a/c 7500 By Royalty a/c. 15000
To shortworking 7500
15000. 15000
5th To bank a/c 7500 By Royalty a/c 11250
To shortworking 3750
11250. 11250