Answer to Question #314348 in Finance for Robert

Question

Ogopa Ltd leased a section of Karura Forest to Ogoplet Ltd (charcoal makers) on 1 January 1994 at a minimum rent of Sh.30,000 merging into a royalty of Sh.150 per ton with the power to recoup short workings during the first 3 years of the lease only. Output over the next 5 years was 90, 150, 270, 170 and 280 tonnes respectively.

Requred: Show the above transactions as they would appear in the books of Ogopa Ltd.

Answer 1

Debit settlements with buyers credit revenue - 30000

Debit settlements with buyers credit revenue - 30000

Debit settlements with buyers credit revenue - 30000

Debit settlements with buyers credit revenue - 43500

Debit settlements with buyers credit revenue - 52500

Debit settlements with buyers credit revenue - 70500

Debit settlements with buyers credit revenue - 55500

Debit settlements with buyers credit revenue -72000