Royalty Account is in the nature of______a)Personal accountb)Real accountc)Nominal account.
Answers
c) Nominal account....
Royalty is payable by a user to the owner of the property or something on which an owner has some special rights. ... It is a nominal account and at the end of the accounting year, balance of Royalty account need to be transferred to the normal Trading and Profit & Loss account.
Royalty Account is in the nature of Nominal Account.
In accounting, nominal accounts are the overall record accounts that are shut toward the finish of each bookkeeping year. The end interaction moves their end-of-year adjusts from the nominal accounts to a long-lasting or genuine general record account. Subsequently, the nominal accounts are additionally alluded to as transitory records. The end interaction additionally implies that every nominal accounts will begin the following bookkeeping year with zero balance.