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A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?
make royalties account?
make royalties account?
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A colliery company has taken lease of a coal mine on a minimum rent of...
Landlord's Account
- Year 1:
- Minimum Rent: 7,500
- Royalty: Nil
- Total Payable: 7,500
- Year 2:
- Minimum Rent: 7,500
- Royalty: 6,000 tonnes * 0.25 = 1,500
- Total Payable: 7,500 (minimum rent)
- Year 3:
- Minimum Rent: 7,500
- Royalty: 24,000 tonnes * 0.25 = 6,000
- Total Payable: 7,500 (minimum rent)
- Year 4:
- Minimum Rent: 7,500
- Royalty: 60,000 tonnes * 0.25 = 15,000
- Total Payable: 15,000 (exceeds minimum rent)
- Year 5:
- Minimum Rent: 7,500
- Royalty: 45,000 tonnes * 0.25 = 11,250
- Total Payable: 11,250 (exceeds minimum rent)
Shortworking Account
- Year 1:
- Shortworking: 7,500 (no royalty)
- Year 2:
- Shortworking: 7,500 - 1,500 = 6,000
- Year 3:
- Shortworking: 7,500 - 6,000 = 1,500
- Year 4:
- Shortworking Recouped: 1,500
- Balance Shortworking: 0 (recouped)
- Year 5:
- Shortworking: None (royalty exceeds minimum rent)
Royalties Account
- Year 1:
- Output: 0 tonnes
- Royalty: 0
- Year 2:
- Output: 6,000 tonnes
- Royalty: 1,500
- Year 3:
- Output: 24,000 tonnes
- Royalty: 6,000
- Year 4:
- Output: 60,000 tonnes
- Royalty: 15,000
- Year 5:
- Output: 45,000 tonnes
- Royalty: 11,250
Conclusion
The colliery company has to account for minimum rent and shortworkings over the lease term of 10 years, with the ability to recoup shortworkings from future royalties. This structured approach ensures that both the company and the landlord are fairly compensated based on coal production.
- Year 1:
- Minimum Rent: 7,500
- Royalty: Nil
- Total Payable: 7,500
- Year 2:
- Minimum Rent: 7,500
- Royalty: 6,000 tonnes * 0.25 = 1,500
- Total Payable: 7,500 (minimum rent)
- Year 3:
- Minimum Rent: 7,500
- Royalty: 24,000 tonnes * 0.25 = 6,000
- Total Payable: 7,500 (minimum rent)
- Year 4:
- Minimum Rent: 7,500
- Royalty: 60,000 tonnes * 0.25 = 15,000
- Total Payable: 15,000 (exceeds minimum rent)
- Year 5:
- Minimum Rent: 7,500
- Royalty: 45,000 tonnes * 0.25 = 11,250
- Total Payable: 11,250 (exceeds minimum rent)
Shortworking Account
- Year 1:
- Shortworking: 7,500 (no royalty)
- Year 2:
- Shortworking: 7,500 - 1,500 = 6,000
- Year 3:
- Shortworking: 7,500 - 6,000 = 1,500
- Year 4:
- Shortworking Recouped: 1,500
- Balance Shortworking: 0 (recouped)
- Year 5:
- Shortworking: None (royalty exceeds minimum rent)
Royalties Account
- Year 1:
- Output: 0 tonnes
- Royalty: 0
- Year 2:
- Output: 6,000 tonnes
- Royalty: 1,500
- Year 3:
- Output: 24,000 tonnes
- Royalty: 6,000
- Year 4:
- Output: 60,000 tonnes
- Royalty: 15,000
- Year 5:
- Output: 45,000 tonnes
- Royalty: 11,250
Conclusion
The colliery company has to account for minimum rent and shortworkings over the lease term of 10 years, with the ability to recoup shortworkings from future royalties. This structured approach ensures that both the company and the landlord are fairly compensated based on coal production.
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A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account?
Question Description
A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account?.
A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account?.
Solutions for A colliery company has taken lease of a coal mine on a minimum rent of 7,500 per year merging into a royalty of 25 paise per tonne raised.Short-working of any year can be recouped out of the royalty of the next three years. Terms of lease is 10 years.the results of the working are: Year. : 1. 2. 3. Output ( in tonne):. Nil. 6,000 24,000 4 5 60,000. 45,000 Show landlord's account and shortworking account in the books of colliery company.?make royalties account? in English & in Hindi are available as part of our courses for UPSC.
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