Example: A coal company leased a land for a minimum rent of Rs. 900 for 1 st year, Rs.1, 200 for 2 nd year, Rs. 1, 800 for 3 rd year, Rs. 2, 500 and Rs. 3, 000 for 5 th year. The royalty at the rate is Rs. 0.60 per ton of output. The company leased a land for 15 years. The output of 6 years is given below: Years Output per ton 1 1, 200 2 1, 800 3 2, 600 4 4, 900 5 5, 700 Find out the short working and surplus with the help of royalty table. The short working recouped whole year of lease. Solution: Years Output per ton Royalty @ Rs. 0.60 per ton of output Minimum rent Short working 1 1, 200 720 900 180 2 1, 800 1, 080 1, 200 120 3 2, 600 1, 560 1, 800 240 4 4, 900 2, 940 2, 500 ---- 5 5, 700 3, 420 3, 000 ---- ...
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