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Mitustration Two EMI Itd granted a lease to JESKAN Ltd to mine baxire on the following terms w ) A royalty payable of GH 1
Mitustration Two
EMI Itd granted a lease to JESKAN Ltd to mine baxire on the following terms
w A royalty payable of GH per tonne extracted.
b A minimum rent of GH
c Shart workings may be recouped in the subsequent two years following its occurrence, subject to a minimum amount of GH per anumm
d In the case of a leckout, the leasec will enjoy a concession in respeet of minimum rent for of the period of the lockout. In the case of a strike, royalties eamed will discharge all the liabilities for that year.
To eticourage mining in the locality, the district assembly has decided to grant a cash subsidy, cquivalent to of the unrecoupable short workings to the lessee up to the first four years of the lease.
The production of JESKAN Ltd for the first years of operation under the lease was:
tableYEAROutput in Tonneswas a strike in and a lockout for months in
There was a strike in and a lockout for months in
Required:
a Royalties payable Account
b Short workings Account
c EMILtd's Account
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