Miustration Two

EMI Lid pranted a lease to JFSKAN Ltd to mine bauxite on the following terms

a$)$ A royalty payable of GH L$\mathrm{.}000$ per tonne extracted.

b$)$ A minimum rent of GH $180m$

c$)$ Shart workings may be recouped in the subsequent two years following its occurtence, subject to a minimum amount of $GH40m$ per annum

d$)$ In the ease of a lockout, 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, equivalent to $25\%$ of the unrecoupable short workings to the lessee up to the first four years of the lease.

The production of JESKAN Lid for the first $6$ years of operation under the lease was:

$\backslash$table$[[$YEAR$,$Output in Tonn$],[1008,80,000],[1999,250,000],[2000,280,000],[2001,320,000],[2002,150,000],[2003,120,000],[$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