Page 182 - Accountancy_F5

Dr Mrefu account Cr
Amount Amount
Date Details Date Details
TZS TZS
31 Dec. 2021 Royalty receivable 30,000,000 31 Dec. 2021 Bank 30,000,000
st
st
31 Dec. 2022 Royalty receivable 50,000,000 31 Dec. 2022 Bank 50,000,000
st
st
31 Dec. 2023 Royalty receivable 55,000,000 31 Dec. 2023 Bank 55,000,000
st
st
FOR ONLINE READING ONLY
31 Dec. 2024 Royalty receivable 60,000,000 31 Dec. 2024 Bank 60,000,000
st
st
Dr Royalty Receivable account Cr
LANGUAGE EDITING
Date Details TZS Date Details TZS
LANGUAGE EDITING
31 Dec. 2021 Statement of P/L 30,000,000 31 Dec. 2021 Mrefu 30,000,000
st
st
31 Dec. 2022 Statement of P/L 50,000,000 31 Dec. 2022 Mrefu 50,000,000
st
st
31 Dec. 2023 Statement of P/L 55,000,000 31 Dec. 2023 Mrefu 55,000,000
st
st
31 Dec. 2024 Statement of P/L 60,000,000 31 Dec. 2024 Mrefu 60,000,000
st
st
Example 6.5
Soil Ltd. leased a quarry to Chemba Ltd. to extract stones under the following terms:
(a) A royalty rent of TZS 2,000 per cubic meter extracted was payable;
(b) Chemba Ltd. had the right to recoup short workings within the first four (4)
years of the lease agreement; and
(c) A minimum rent of TZS 15,000,000 per annum was payable.
The quantity of extracted stones for the period of six years is as follows:

Year 2019 2020 2021 2022 2023 2024
Quantities (Cubic meter of
stones) 6,250 6,875 7,200 8,500 10,250 11,000
Required: Prepare ledger accounts in the books of Soil Ltd.

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