When the royalty are less than the minimum rent ?
A)Royalties account is debited with the actual amount of royalties earned
B)Royalties account is debited with minimum rent
C)Royalties account is debited with the amount paid to landlord
D)Royalties account is debited with the excess of minimum rent over actual rent

Question

Quizplus · Accepted Answer

When royalties are less than the minimum rent, the royalties account is debited with the actual amount of royalties earned, as this reflects the actual earnings from the royalties.

When the Royalty Are Less Than the Minimum Rent