Question: On first April 2012, the Mital Colleries Ltd. Took a piece of land on lease. A Minimum rent of Rs. 2000 in the first year

On first April 2012, the Mital Colleries Ltd. Took a piece of land on lease. A Minimum rent of Rs. 2000 in the first year , Rs. 4000 in the second year , and therefore Rs. 6000 per annum , is to be merging into a royalty of 40 paisa per ton , with power to recoup short workings over the first three years of the lease only. The figures of annual output for the years from 1.4.2012 to 31.3.2016 , were 1,000, 10,000, 18,000, and 20,000 ton respectively.

Pass the journal entries and show necessaryaccounts in the books of the Mital Colleries Ltd.

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To record the lease and the subsequent royalties the following journal entries need to be made On Ap... View full answer

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