Question

Royalty paid on production is shown in the -----
a) Balance-sheet
b) Trading Ac
c) Profit & Loss ac
d) parent current ac​

Answer 1

Royalty paid on production is shown in the

b) Trading Ac

Answer 2

Royalty Paid:

Royalty paid on production is shown in the

a) Balance-sheet

b) Trading Ac

c) Profit & Loss ac

d) parent current ac​

Royalty:

• It is shown in the trading account in the final accounts.
• While it is on the production or output, it should be shown in the manufacturing account.
• An amount paid on using something that has special rights is called royalty.
• It is the amount paid to purchase a right or property.