Royaltiy - lesee & sub-lesee

Uma (Student) (158 Points)

12 August 2012  

On 1.4.2003 pawan got a mining lease and from that date a part of the mine was sub-leased to
Pathan. The terms of payment and the production of 5 years are as below.
Particulars
                                                                    Lessee                   Sub-Lessee
 Royalty (Rs/Tonne)                                  2.00                              3.00  
Dead Rent per anum(Rs)                       15,000                       10,000
Short working recoverable(Years)            3                                   2

Production (Year ended....31.3.)
                         2004                                  1,000                           1,000
                         2005                                  3,000                           2,000
                         2006                                  12,000                         5,000
                         2007                                  9,000                          2,000( strike)
                         2008                                  5,000                          12,000

In case of strike, royalty earned will discharge all liabilities for the year only.
Show ledger accounts in the books of pawan.

pls help me how to show ledger account in pawan's book.

I calculated the shortworknig  like this:

Pawan payable to landlord(Pawan's production only taken)
year Producton in tonne Actual royalty Mninmum rent excess working occure recope wirtten of carried down(next yr.) Amount payable to landlord
2004 1000 2000 15000 - 13000 - - 13000 15000
2005 3000 6000 15000 - 9000 - - 22000 15000
2006 12000 24000 15000 9000 - 9000 - 13000 15000
2007 9000 18000 15000 3000 - 3000 1000 90000 15000
2008 5000 10000 15000 - 5000 - 9000 5000 15000
Pawan - Royality recivable from sub-lessee
year Producton in tonne Actual royalty Mninmum rent excess working occure recope wirtten of carried down(next yr.) Amount payable to landlord
2004 1000 3000 10000 - 7000 - - 7000 10000
2005 2000 6000 10000 - 4000 - - 11000 10000
2006 5000 15000 10000 5000 - 5000 2000 4000 10000
2007 2000 6000 10000 - - - 4000 - -
2008 12000 36000 10000 26000 - - - - 36000
Total royalties payable to landlord (pawan production + sub-lesse production))
year Total Producton in tonne Actual royalty Mninmum rent excess working occure recope wirtten of carried down(next yr.) Amount payable to landlord
2004 2000 4000 15000 - 11000 - - 11000 15000
2005 5000 10000 15000 - 5000 - - 16000 15000
2006 17000 34000 15000 19000 - 16000 - - 18000
2007 11000 22000 15000 7000 - - - - 22000
2008 17000 34000 15000 19000 - - - - 34000