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    Royalty account Online test

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    1. Shortworking is excess of
    2. Minimum rent over actual rent
      Actual rent over minimum rent
      Minimum output over actual output
      None of the above

    3. When the royalties are less than the minimum rent
    4. Royalties account is debited with the actual amount due
      Royalties account is debited with the minimum rent
      Royalties account is debited with the amount paid to the landlord
      Royalties account is debited with the excess of minimum rent over the actual rent

    5. The lessee's right to recoup shortworkings is related to
    6. First year
      Next three years
      Terms and agreement
      During the period of agreement

    7. Irrecoverable shortworking are transferred to
    8. Trading A/c
      P/L A/c
      P/L Appropriation account
      Royalty account

    9. When shortworkings are to be recovered, the account to be debited is:
    10. Landlord A/c
      shortworkings A/c
      P&LA/c
      None of the above

    11. Which of the following statement is false
    12. Royalty paid on production is debited to P/L a/c
      Royalty a/c is a nominal account
      Minimum rent is termed as Dead Rent
      When shortworkings are recouped, the account to be debited in the books of lessee is landlord A/c.

    13. In case of Sub‐lease Royalty earned by the lessor is credited to
    14. Sub‐lessee account
      P/L A/c
      shortworking Suspense A/c
      Royalties Receivable account

    15. Royalty is the agreement between the following persons
    16. Seller and buyer
      Banker & customer
      Trustee and Beneficiaries
      Landlord and tenant

    17. Excess of minimum rent over royalties is termed as
    18. Surplus
      Shortworkings
      Royalties Payable
      Royalties Receivable

    19. Short workings A/c shows ________ balance in the books of Lessee
    20. Debit Balance
      Credit Balance