Difference between royalty reserve and shortworking
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Shortworking is that amount by which the minimum rent exceeds actual royalty. In other words, whenever the minimum rent is more than the actual royalty, the difference is called redeemable dead rent. ... Shortworking is also called 'royalty suspense' by lessor.
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Explanation:
Royalty reserve means a reserve which is created on any date with an amount which is equal to the sum of the royalties which are either due or accrued .The amount in such reserve can be used to pay off the due royalty or can be used to dispose off future royalty payments.
Short working is the difference between actual royalty and minimum rent .It can be said that if minimum rent exceeds the amount of actual royalty,it is the redeemable dead rent i.e short working.
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