Question

(viii) Patent right Royalty 25. On 1st January, 2009 Anand acquires the right to manufacture and sale patent locks from Basant on a royalty of * 5 per lock sold with a minimum annual rent of 7 50,000 payable on 31st December each year. The number of locks sold is as follows: Year ended on 31st December No. of locks sold 2009 8,000 2010 9,000 2011 11,000 2012 18,000 Prepare necessary ledger accounts to record the above in Anand's books which are closed on 31st December, if : (a) Shortworkings are not recoupable. (b) Shortworkings are recoupable within next two years of the deficiency. (Ans.(a) Unrecoupable shareworking in 2009 * 10,000, in 2010 * 5,000; (b) Unrecouped S. W. written off 7 5,000 in 2011.) 26 1 1 0​

Answer 1

Patent right Royalty 25. On 1st January, 2009 Anand acquires the right to manufacture and sale patent locks from Basant on a royalty of * 5 per lock sold with a minimum annual rent of 7 50,000 payable on 31st December each year. The number of locks sold is as follows: Year ended on 31st December No. of locks sold 2009 8,000 2010 9,000 2011 11,000 2012 18,000 Prepare necessary ledger accounts to record the above in Anand's books which are closed on 31st December, if : (a) Shortworkings are not recoupable. (b) Shortworkings are recoupable within next two years of the deficiency. (Ans.(a) Unrecoupable shareworking in 2009 * 10,000, in 2010 * 5,000; (b) Unrecouped S. W. written off 7 5,000 in 2011.) 26 1 1 0