Question

What journal entries are passed relating to royalties in the books of lessee and landlord ? Explain with example.

Answer 1

Hy here is your answer....

• The Lessor is entitled to receive Royalty from the Lessee. Here royalty ... Pass the necessary journal entries in the books of landlord.
• Royalty Accounts. In terms of accounting, royalty is what a lessee pays to a lessor for the use of any rights, copyrights, franchises or any such asset. It is the system of sharing of revenues between the lessee and the lessor.