Royalty is reduced proportionately
Short workings is reduced proportionately
Minimum rent is reduced proportionately
All of the above
Answer is Wrong!
Answer is Right!
The correct answer is: D. All of the above
Under Royalty Accounts, if there is strike for a certain period then:
- Royalty is reduced proportionately. This is because the miner is not producing any coal during the strike, so the royalty payment should be reduced accordingly.
- Short workings is reduced proportionately. This is because the miner is not working as many hours during the strike, so the short workings payment should be reduced accordingly.
- Minimum rent is reduced proportionately. This is because the miner is not using the mine as much during the strike, so the minimum rent payment should be reduced accordingly.
It is important to note that these are just general guidelines, and the specific terms of the royalty agreement may vary depending on the specific situation.