3 Questions
What is the royalty rate for the colliery lease?
The royalty rate for the colliery lease is Rs. 1.50 per tonne.
What is the minimum rent for the colliery lease?
The minimum rent for the colliery lease is Rs. 20,000.
How many years does the lessee have to recoup shortworkings?
The lessee has four years to recoup shortworkings.
Test your accounting knowledge with this quiz on journal entries for a leased colliery. Calculate and record the journal entries for each year based on the given lease terms and the output of the colliery. Practice your accounting skills and enhance your understanding of lease accounting.
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