Accounting · Royalty Accounts
Based on a standard three-year production cycle with a Minimum Rent of ₹15,000, arrange the following events in their correct chronological order according to the short working recoupment lifecycle: A. Recording a short working of ₹7,000 in Year 1 when actual royalty is ₹8,000. B. Recording an additional short working of ₹2,000 in Year 2 when actual royalty reaches ₹13,000. C. Achieving an actual royalty of ₹21,000 in Year 3, which exceeds the guaranteed minimum rent. D. Recouping ₹6,000 of the accumulated short workings from the surplus earned in Year 3. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1C, D, A, B
- 2A, C, B, D
- 3B, A, D, C
- 4A, B, C, D✓
Correct answer
A, B, C, D
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