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West Bengal Coal Co. obtained the lease (with powers to sub- lease) of a coal mine from K. Roy for a

Description

West Bengal Coal Co. obtained the lease (with powers to sub- lease) of a coal mine from K. Roy for a period of 30 years from 1st January, 2011. The terms of the lease contained, amongst others, the following provisions:

(a)Minimum rent payable is ~ 20,000 merging into a royalty of Re 1 per ton of coal raised in any year.

(b)Shortworking is recoverable throughout the term of the lease.

(c)West Bengal Coal Co. granted sub-lease of a portion of the colliery on 1st January, 2012 for a period 15 years to Coal Syndicate on the following terms: (i) Minimum rent payable is ~ 12,500 merging into a royalty of

~ 1.50 per ton of coal raised in any year; and (ii) Shortworking is recoverable during the first three years of the lease. In the first 4 years the raisings were as follows:

Year

By West Bengal Coal (Tons)

By Coal Syndicate (Tons)

2011

7,000

----

2012

8,000

5,000

2013

12,000

8,000

2014

15,000

10,000

You are required to show: (i) Royalties Payable Account; (ii) Royalties Receivable Account; (iii) Shortworkings Recoupable Account; (iv) Royalties Suspense Account; and (v) Coal Syndicate Account in the books of West Bengal Coal Co.