Royalty A/c
Land Lord A/c
Profit & Loss A/c
Short workings A/c
Answer is Right!
Answer is Wrong!
The correct answer is: A. Royalty A/c
Royalty is a payment made by a lessee to the lessor for the use of the lessor’s property. It is usually calculated as a percentage of the lessee’s gross revenue from the property. The royalty is recorded in the lessee’s accounts as an expense.
The other options are incorrect because:
- Option B: Land Lord A/c is the account where the lessor records the rent received from the lessee.
- Option C: Profit & Loss A/c is the account where the lessee records its net income or loss for the period.
- Option D: Short workings A/c is an account used to record the intermediate calculations made in preparing the financial statements.