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Question Four Stone Crushers Limited leased a quarry from Trumpet for a minimum rental of K2 000 p.a. agreeing a royalty of K0.10 per metric
Question Four Stone Crushers Limited leased a quarry from Trumpet for a minimum rental of K2 000 p.a. agreeing a royalty of K0.10 per metric ton extracted. Short workings could be recovered in the first three years of the lease only. The output of stone for the first four years was as follows. Year Metric tons 1 12 000 2 15 000 3 26 000 4 30 000 You are required to record the transactions in the following accounts: a) Royalties Payable Account b) Landlord Account c) Short-workings Account.
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