Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Help…. how to do this?
- This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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- November 3, 2020 at 5:47 am #593897
1) Amar Traders obtained a lease of a coal mine on 1st April 1999 on the following terms
a) Royalty Re 1 per ton
b) Minimum Rent rupees 12,000 p.a
c) Recoupment of shortworkings of each year during the next 3years subject to a
maximum of rupees 2,500 p.a
d) In the event of strike ,the minimum rent would be taken pro-rata on the basis of actual
working days ,but in the event of lockout the lessee would enjoy a concession in respect
of minimum rent for 50% of the period of lockout
e) Working for the first four years as follows;
Year Actual Royalty
1999-2000 7000
2000-2001 10,200
2001-2002 19,000
2002-2003 10,800(Strike 73 days)
2003-2004 9000(Lockout 4 Months)
Prepare Minimum Rent A/c, Royalty Account, Shortworking account and land lord account in
the books of Amar Traders.November 3, 2020 at 10:26 am #593929This is not examinable in Paper FA.
You cannot be asked to produce t-accounts, but more importantly royalties and short-workings are not in the syllabus.
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