Accountancy, asked by priyagupta943088, 5 months ago

the formula of shortworking is​

Answers

Answered by AdityaSharma99
2

Explanation:

The excess of Minimum Rent over actual royalty is known as short-working. Therefore, question of short-working will only arise when the actual royalty is less than the Minimum Rent.

Thank You

Answered by bhoomikalokesh13
1

The formula for shortworking is

Short working =

Minimum Rent - Actual Royalty.

For calculating short working another formula can also be applied that is Minimum Rent

Minimum rent =

actual royalty + short working.

Short working.

  • In simple words the amount where the minimum rent is more than the actual royalty is known as Short working.
  • It can also be known as the difference between Royalty and minimum rent.
  • It will only arise when the minimum rent is more than the royalty.
  • The major source for short working is Borrowing from bank.
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