Question

short note on short workings

Answer 1

Short working 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 short working or redeemable dead rent. Short working is also called 'royalty suspense' by lessor.

Answer 2

A short note on short workings is as follows:

• The amount by which the minimum rent exceeds the real royalty is known as short working.
• In other words, the gap between the minimum rent and the real royalty is known as short working or redeemable dead rent.
• The lessor refers to short working as "royalty suspense." Short Workings is adjusted against the extra royalty income in subsequent years. Recoupment of Short Working Capital is the term for this type of process of correcting Short Working Capital.