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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

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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 1,000 per tonne extracted.
b) A minimum rent of GH 180m
c) Shart workings may be recouped in the subsequent two years following its occurrence, subject to a minimum amount of GH 40m per anumm
d) In the case of a leckout, the leasec will enjoy a concession in respeet of minimum rent for 50% 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 25% 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 6 years of operation under the lease was:
\table[[YEAR,Output in Tonnes],[1098,80,000],[1099,250,000],[2000,280,000],[2001,320,000],[2002,150,000],[2003,120,000],[was a strike in 2002 and a lockout for 6 months in 2003.,]]
There was a strike in 2002 and a lockout for 6 months in 2003.
Required:
a) Royalties payable Account
b) Short workings Account
c) EMILtd's Account
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