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Help…. how to do this?

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Help…. how to do this?

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 3, 2020 at 5:47 am #593897
    thanemone
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    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 #593929
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54832
    • ☆☆☆☆☆

    This 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.

  • Author
    Posts
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