Accountancy, asked by rish520, 1 year ago

Difference between royalty reserve and shortworking

Answers

Answered by logan0072
0
varghese verybhai hxxoyd
Answered by xerilee89
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Royalty is the amount a person pays to the owner for the usage of properties. This properties may be in a form of patents, license and trademarks. Royalty also applies to copyrights of arts, music, films, publish, etc. The person should pay the owner a fixed minimum amount for renting the property. This is known as the minimum rent.

On the other hand, short-working happens when the minimum rent is higher than the royalty. For example, if the person should pay a minimum rent of Rs 500,000 to the owner per year for using the property but the actual royalty is only Rs 450,000, then there is a short-working of Rs 50,000.

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