how to determine royalty under different conditions?

In case of opening short working reserve a/c:

Example: A coal company took a land for lease for 30 years from Mr. Y on minimum rent of Rs. 12, 000 per annum. The company is agreeing to pay royalty @ 75 paisa per ton. The excess of minimum rent over royalty is recoup in the first four year only. Find out the royalty if the company decides to open short workings reserve a/c. The output of five years is as follows:

Years	Output
1	14, 000
2	26, 500
3	36,900
4	12, 000
5	46, 200

Solution:

Years	Output	Royalty @ 75 paisa per ton of output	Minimum rent	Short workings	Surplus
1	14, 000	10, 500	12, 000	1, 500	-----
2	26, 500	19, 875	12, 000	-----	7, 875
3	36,900	27, 675	12, 000	-----	15, 675
4	12, 000	9, 000	12, 000	3, 000	-----
5	46, 200	34, 650	12, 000	-----	22, 650

Years	Recouped short workings	Un-recouped short workings transferred to profit and loss a/c	Payment to landlord
1	-----	------	12, 000
2	1, 500	------	12, 000
3	-----	-----	12, 000
4	-----	3, 000	12, 000
5	-----	------	34, 650

In Case of Strike in a Company:

Example: A company took a mine for lease on minimum rent is Rs. 10 for 10 years. The royalty pay by lessee @ Re. 1 per ton. The company faces a strike in year 2007. In that case lessor decides to reduce the minimum rent to 40% in that year only. The right to recoup the short workings is for only 8 years from commencement of lease. Find out how company recoup its short workings from surplus. The output of 6 years is as follows:

Years	Output
2003	8, 000
2004	11, 500
2005	16,900
2006	12, 000
2007	6, 200
2008	20, 000

Solution:

Years	Output	Royalty @ Re. 1 per ton of output	Minimum rent	Short workings	Surplus
2003	8, 000	8, 000	10, 000	2, 000	-----
2004	11, 500	11, 500	10, 000	-----	1, 500
2005	10,900	10, 900	10, 000	-----	900
2006	12, 000	12, 000	10, 000	-----	-----
2007	3, 400	3, 400	4, 000	600	-----
2008	20, 000	20, 000	10, 000	-----	10, 000

Years	Recouped short workings	Un-recouped short workings transferred to profit and loss a/c	Payment to landlord
2003	-----	------	10, 000
2004	1, 500	------	18, 375
2005	-----	-----	27, 675
2006	-----	-----	12, 000
2007	-----	------	34, 650
2008	700	------	19, 300

Minimum rent reduced to 40 % = Rs. 4, 000

If minimum rent is reduced by 40% then the minimum rent value is Rs. 6, 000.

Example: A company took a land from Mr. Sharma on lease for 20 years with minimum rent is Rs. 3, 000 per annum. The royalty of land is 80 paisa per ton of output. There is a strike of 6 months on 3^rd year. The minimum rent is reduced on the basis of strike duration in 3^rd year. The right to recoup the short workings is only in next year. The output of 4 years is as follows:

Years	Output
1	3, 000
2	4, 500
3	1, 100
4	6, 200

 Also find out the short workings recouped if minimum rent and royalty is equal on 3^rd year due to strike.

Solution:

Years	Output	Royalty @ 80 paisa per ton of output	Minimum rent	Short workings	Surplus
1	3, 000	2, 400	3, 000	600	-----
2	4, 500	3, 600	3, 000	-----	600
3	2, 100	1, 680	1, 500	-----	180
4	6, 200	4, 960	3, 000	-----	1, 960

Years	Recouped short workings	Un-recouped short workings transferred to profit and loss a/c	Payment to landlord
1	-----	------	3, 000
2	600	------	3, 000
3	-----	-----	3, 180
4	-----	-----	4, 960

 In case minimum rent and royalty is equal on 3^rd year there is no surplus and short working.