Page 186 - Accountancy_F5

Dr Royalty receivable account Cr

Date Details TZS Date Details TZS

st
31 Dec. 31 Dec.
st
2020 Statement of P/L 8,000,000 2020 Njombe Miners Ltd. 8,000,000
2021 Statement of P/L 9,000,000 2021 Njombe Miners Ltd. 9,000,000
FOR ONLINE READING ONLY
2022 Statement of P/L 12,000,000 2022 Njombe Miners Ltd. 12,000,000
2023 Statement of P/L 13,600,000 2023 Njombe Miners Ltd. 13,600,000
2024 Statement of P/L 11,000,000 2024 Njombe Miners Ltd. 11,000,000

Dr Short workings allowable account Cr
LANGUAGE EDITING
Date Details TZS Date Details TZS

31 Dec. 2020 Balance c/d 3,000,000 31 Dec. 2020 Njombe Miners Ltd. 3,000,000
st
st
Balance c/d 5,000,000 1 Dec. 2021 Balance b/d 3,000,000
st
31 Dec. 2021 Njombe Miners Ltd. 2,000,000
st
5,000,000 5,000,000
31 Dec. 2021 Njombe Miners Ltd. 2,000,000 1 Dec. 2022 Balance b/d 5,000,000
st
st
Statement of P/L
Balance c/d 1,000,000
31 Dec. 2022 LANGUAGE EDITING
Njombe Miners Ltd.
2,000,000
st
5,000,000 5,000,000
31 Dec. 2023 Balance c/d 2,000,000 1 Dec. 2023 Balance b/d 2,000,000
st
st
Exercise: 6.2
1. Pasua Company leased a land for extraction of minerals from Loliondo Company
Ltd. on royalty terms for TZS 50,000 per kg, in which no minimum rent is required.
The lease provided that the actual royalty for the year should be paid. The trading
results for the eight (8) years, from 2017 to 2024 are provided below:

Years 2017 2018 2019 2020 2021 2022 2023 2024
Production

(kg) - 90 250 350 420 550 280 450
Required:
Prepare ledger entries in the books of Pasua Company.
2. Nundu Ltd. acquired rights to extract minerals from the mine belonging to Gama
Ltd. on the following terms:

Student’s Book Form Five
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