If the royalty is less than minimum rent , the balance of royalty account at the end of theyear has to be transfer to
A)Capital reserve account.
B)Reserve capita account
C)Profit and loss account
D)None of the above

Question

Quizplus · Accepted Answer

When the royalty is less than the minimum rent, the balance of the royalty account is typically transferred to the Profit and Loss account. This is because the shortfall represents an expense or loss to the business, which needs to be accounted for in its income statement.

If the Royalty Is Less Than Minimum Rent , the Balance