Royalty accounts, accounting, Basic Statistics

Royalty accounts, accounting, Basic Statistics

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Ritu acquired a mine on lease from Richa for a period of 8 years at a royalty of ` 60 per tonne of coal produced subject to minimum rent of ` 1,00,000 for the first year, increasing by ` 30,000 every year till 2,80,000 per annum is reached. Short workings of any one year may be recouped out of excess workings of the following two years only. The output during the first five years was as follows :

Year ending 31st March
2006-07 2007-08 2008-09 2009-10 2010-11
Output in tonnes
600 900 2,500 3,800 5,000
Prepare accounts in the buks of lesse

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