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Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.?
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Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise p...
Minimum Rent Account:
The minimum rent is a fixed amount that the lessee has to pay to the lessor irrespective of the amount of coal extracted. In this case, the minimum rent is ₹ 35,000 per annum. The Minimum Rent Account is prepared to record the payment of minimum rent.
- Debit Minimum Rent Account with ₹ 35,000 every year.
- Credit Bank Account with ₹ 35,000 every year.
Royalty Account:
Royalty is the amount paid by the lessee to the lessor for every tonne of coal extracted. In this case, the royalty is 50 paise per tonne of coal raised. The Royalty Account is prepared to record the payment of royalty.
- Debit Royalty Account with the total amount of royalty paid every year.
- Credit Bank Account with the total amount of royalty paid every year.
Short Working Account:
Short working is the difference between the minimum rent paid and the royalty due. If the royalty paid is less than the royalty due, the lessee has to recoup the short working in the subsequent years. The Short Working Account is prepared to record the short working and its recoupment.
- Debit Short Working Account with the amount of short working every year.
- Credit Landlord Account with the amount of short working every year.
- If there is any recoupment of short working in subsequent years, credit Short Working Account and debit Landlord Account accordingly.
Landlord Account:
The Landlord Account is prepared to record the receipt of minimum rent, royalty, and short working recoupment.
- Debit Bank Account with the total amount of minimum rent, royalty, and short working recoupment received every year.
- Credit Landlord Account with the total amount of minimum rent, royalty, and short working recoupment received every year.
Explanation:
In this case, Western Coal Field Ltd. is the lessee, and they have to pay a minimum rent of ₹ 35,000 per annum and a royalty of 50 paise per tonne of coal raised to the lessor. If the royalty paid is less than the royalty due, they have to recoup the short working in the subsequent years.
The Minimum Rent Account is prepared to record the payment of minimum rent. The Royalty Account is prepared to record the payment of royalty. The Short Working Account is prepared to record the short working and its recoupment. The Landlord Account is prepared to record the receipt of minimum rent, royalty, and short working recoupment.
By maintaining these accounts, Western Coal Field Ltd. can keep track of their payments and recoupments and ensure that they are complying with the lease agreement.
The minimum rent is a fixed amount that the lessee has to pay to the lessor irrespective of the amount of coal extracted. In this case, the minimum rent is ₹ 35,000 per annum. The Minimum Rent Account is prepared to record the payment of minimum rent.
- Debit Minimum Rent Account with ₹ 35,000 every year.
- Credit Bank Account with ₹ 35,000 every year.
Royalty Account:
Royalty is the amount paid by the lessee to the lessor for every tonne of coal extracted. In this case, the royalty is 50 paise per tonne of coal raised. The Royalty Account is prepared to record the payment of royalty.
- Debit Royalty Account with the total amount of royalty paid every year.
- Credit Bank Account with the total amount of royalty paid every year.
Short Working Account:
Short working is the difference between the minimum rent paid and the royalty due. If the royalty paid is less than the royalty due, the lessee has to recoup the short working in the subsequent years. The Short Working Account is prepared to record the short working and its recoupment.
- Debit Short Working Account with the amount of short working every year.
- Credit Landlord Account with the amount of short working every year.
- If there is any recoupment of short working in subsequent years, credit Short Working Account and debit Landlord Account accordingly.
Landlord Account:
The Landlord Account is prepared to record the receipt of minimum rent, royalty, and short working recoupment.
- Debit Bank Account with the total amount of minimum rent, royalty, and short working recoupment received every year.
- Credit Landlord Account with the total amount of minimum rent, royalty, and short working recoupment received every year.
Explanation:
In this case, Western Coal Field Ltd. is the lessee, and they have to pay a minimum rent of ₹ 35,000 per annum and a royalty of 50 paise per tonne of coal raised to the lessor. If the royalty paid is less than the royalty due, they have to recoup the short working in the subsequent years.
The Minimum Rent Account is prepared to record the payment of minimum rent. The Royalty Account is prepared to record the payment of royalty. The Short Working Account is prepared to record the short working and its recoupment. The Landlord Account is prepared to record the receipt of minimum rent, royalty, and short working recoupment.
By maintaining these accounts, Western Coal Field Ltd. can keep track of their payments and recoupments and ensure that they are complying with the lease agreement.
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Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.?
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Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.?.
Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.?.
Solutions for Western coal field Ltd. Is lessee of a mine on a royalty of 50 paise per tonne of coal raised with a dead rent of ₹ 35,000 per annum and power to recoup short working during the first five years of the lease. The output for the first five years was as follows: 1st year 5000 tonnes 2nd year 50000 tonnes3rd year 80000 tonnes 4th year 100000 tonnes 5th year 130000 tonnes write up the Minimum rent accunt, the Royalty, Short workingworking and Landlord Account in the books of Western coal field Ltd.? in English & in Hindi are available as part of our courses for B Com.
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