Question

what is the purpose of shortworking Reserve Account?​

Answer 1

Answer:

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Shortworking is the amount by which the actual royalty is exceeded by minimum rent. Therefore, whenever the minimum rent rises over the actual royalty it is known as redeemable dead rent or shortworking. It is also known as royalty suspensor. Royalty reserves refer to the payment that is due as per the contract.

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Answer 2

Explanation:

Shortworking is the amount by which the actual royalty is exceeded by minimum rent. Therefore, whenever the minimum rent rises over the actual royalty it is known as redeemable dead rent or shortworking.