Royalty Accounts

Royalty is a …..

• (A) Personal Account

• (B) Real Accounts

• (C) Representative Personal Accounts

• (D) Nominal Accounts

Landlord is a …..

• (A) Personal Accounts

• (B) Natural Personal Account

• (C) Both A & B

• (D) B only

Royalty Agreement is for …

• (A) Long-Term Asset

• (B) High Value Asset

• (C) Medium Value Asset

• (D) Both A & B

Minimum rent is.........

• (A) Always Fixed

• (B) Always Flexible

• (C) Sometimes Flexible

• (D) Both A & C

Payment of Minimum Rent is made when

• (A) Minimum Rent is more than Royalty

• (B) Minimum Rent is Equal to Royalty

• (C) A only

• (D) Both A & B

Surplus is used for

• (A) Payment to Landlord

• (B) Adjustment of Shortworking

• (C) Both A & B

• (D) All of the Above

During Lockout…

• (A) Minimum Rent Changes

• (B) Minimum Rent May Change

• (C) Minimum Rent Always Change

• (D) None of the Above

When MR is ₹10,000/- and Royalty is ₹7,000/-. The landlord will be paid

• (A) ₹10,000/-

• (B) ₹7,000/-

• (C) ₹3,000/-

• (D) None of the Above

When MR is ₹10,000/- and Surplus is ₹7,000/- and Adjustable shortworking is ₹5,000/. The landlord will be paid

• (A) ₹10,000/-

• (B) ₹17,000/-

• (C) ₹12,000/-

• (D) ₹15,000/-

When there is unrecouped shortworking….

• (A) It is Adjusted against shortworking

• (B) Transferred to P & L a/c

• (C) Treated as per Agreement

• (D) All of the Above