What is Royalty Accounting? How it calculate? Give some
example.
Answer Posted / chandu
Royalty calculated on land. the landlord(lesser) is the
owner of the land. The lesse has to pay the rayalty to land
lord.
Calculated on productivity. The minimum rayalty has to pay.
Ex: Coal mines.
Per year: 150000.00
Per unit: 2.00
In first year 100000 units produced
2nd year 50000 units produced.
Sol:
100000*2= 200000
the minimum rayality is 150000. but the productivity is
200000 for 1st year. The maximum amount 200000 has to pay
for 1st year.
2nd year: 50000*2=100000 only.
Minimunm amount is 150000 rayality.
The minimum amount has to pay 150000.
50000 is loss to lesse.
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