Page 197 - Accountancy_F5

The following production information is also provided:
Year Number of bottles manufactured

Namanga Ltd. Tumaini Ltd.
2020 20,500 -

2021 11,000 6,000
TZSREADING ONLY
2022 14,000 7,000
2023 16,000 11,000

2024 12,000 5,000
Required:
LANGUAGE EDITING
Show the relevant ledger accounts in the books of Namanga Ltd. for the years ended
31 December 2020 to 31 December 2024.
st
st
Solution 6.10
Computations of the original lessee are tabulated as follows:
Table analysis for the original lessee
Year Output Actual Minimum Short Short Irrecoverable Royalty
(bottles) royalty rent workings workings short paid
@20 recouped workings
FOR ONLINE
TZS TZS TZS TZS TZS
2020 20,500 410,000 500,000 90,000 - - 500,000
2021 17,000 340,000 500,000 160,000 - 90,000 500,000
2022 21,000 420,000 500,000 80,000 - 160,000 500,000

2023 27,000 540,000 500,000 - 40,000 40,000 500,000
2024 17,000 340,000 500,000 160,000 - 160,000 500,000

Note:
The total output above is the aggregate of bottles manufactured by both the lessee and sub-
lessee.

Student’s Book Form Five
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23/06/2024 17:35
ACCOUNTANCY_DUMMY_23 JUNE.indd 184
ACCOUNTANCY_DUMMY_23 JUNE.indd 184 23/06/2024 17:35