Bengal Coal Ltd. got the lease of a colliery on the basis of 50 paise per ton of coal raised subject to a Minimum Rent of Rs. 20,000 p.a. The tenant has the right to recoup short-workings during first four years of the lease and not afterwards. You are required to give the Journal entries… Читать далее Financial Accounting Royalty Accounts
Месяц: Март 2022
What Are Royalties: Definition & How Do They Work?
For example, the contract stipulates that the Minimum Rent is Rs. 12,000 per year. As such, there will not be any short-working of Rs. 4,000 (Rs. 12,000 – Rs. 8,000) which may be considered in other years. If you receive royalties from someone for use of your property, you must claim these payments as business… Читать далее What Are Royalties: Definition & How Do They Work?
How Do You Read a Balance Sheet?
Equity is important because it represents the ownership interest of shareholders in a company. Equity can also be used to give insights into a company’s financial health. For example, a high equity ratio (the ratio of equity to total assets) suggests that a company is in good financial shape. Some elementary accounting concepts have been… Читать далее How Do You Read a Balance Sheet?
What Is a Statement of Financial Position?
The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, revenues, and costs, as well as its cash flows from operating, investing, and financing activities. Unlike the income statement, the balance sheet does not… Читать далее What Is a Statement of Financial Position?