- 1 Marks
Question
What are the accounting entries when the royalty payable exceeds the minimum rent?
Answer
Dr: Royalty payable accounts
Cr: Short workings account
Cr: Landlord accounts
Explanation:
When the royalty payable exceeds the minimum rent, it results in an additional liability to be recorded. The royalty payable account is debited, while short workings (if recoverable) and landlord accounts are credited to reflect the payment arrangement.
- Tags: Accounting Entries, Minimum Rent, Royalty
- Level: Level 1
- Topic: Elements of Financial Statements
- Series: NOV 2013
- Uploader: Theophilus