Royalty Accounts – Introduction, Terms Use, Summary :-  Here in this post we are going to discuss about the meaning, definition and introduction to the Royalty Accounts. We will also discuss the Terms Uses in Royalty.

Introduction/ Definition, Meaning of Royalty Accounts :-

Amount paid (or Payable) by the lease to The landlord(or owners) for transferring of special right to use any particular property is termed as royalty accounts.

Terms Use In Royalty :-

• Year :- it means year of lease production.
• Output :- production/yield in a year period.
• Royalty :- Output x rate of royalty as par the agreement.
• Minimum rent :- A minimum amount that must be paid to the landlord at any circumstances.
• Short working :- Excess payment made due to short production in a year termed as a short working.
• Short working recouped(s.w.r) :- Adjustment of short working from excess working as par the condition provision agreed between the two.
• Short working Recoupment :- Transferred to profit and loss account the short working that can not be adjusted in future it is transferred to profit and loss account.
• Amount paid to landlord :- A final adjusted amount that is paid to the landlord.

This is all about the post, your suggestions and corrections are welcomed here, please comment in box with corrections or suggestions.

Keep visiting Our Graduation Commerce Section for more topics.

Thanks for visiting and reading, Have A Great Day !!