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1. ABC Pvt. Ltd acquired the right to publish a book
entitled “Accountancy easy” From Writer at a royalty of Rs.
20 per copy of the book sold. The minimum rent was fixed at
Rs. 30,000 per year. It was agreed, that the short workings
of any year can be recouped with in 2 years immediately
following the year in which short workings occurred.
The no. of copies sold during the five years was as
following:
1. 1st year -1000
2. 2nd year -1400
3. 3rd year -1800
4. 4th year -3000
5. 5th year -1200
Show royalties account in the books of the publisher.
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