Royalty AccountsContents:- 1. Royalty is payable for use of special right. 2. Royalty is payable on the basis of production. 3. Royalty is different from rent. 4. User is called lessee and owner is called landlord.Meaning of RoyaltyDifference between Royalty and RentKinds/ Types of Royalty:1. Mining Royalty 2. Brick Making royalty 3. Oil well Royalty4. Patent Royalty 5. Machine royalty6. Copyright royalty7. Technical Knowledge Royalty8. Trade mark royalty 9. Royalty to Foreign company for sale of production. 10. Other RoyaltyImportant terms:1. Landlord 2. Lessee 3. Royalty 4. Minimum Rent or Dead Rent 5. Short working: S/W = Minimum rent − Royalty 6. Surplus: Surplus = Royalty − Minimum rent 7. Recouping of short workingCondition of Recouping Short workingBooks of LesseeCalculation TableJournal Entries in the books of lesseeMinimum Rent in case of strike or Lockout or other reasonMinimum Rent ReducedNazrana AccountMinimum Rent Account Method Or Dead Rent Account MethodJournal Entries in the books of LandlordMeaning of Royalty Royalty means a special type of rent which shall be received by owner of mines, owner of patent, author of books etc. for transfer of right of extraction of minerals from mine. Right of publishing and sell of books or producing or sell any patented goods etc. An individual, firm or any other institution pays a certain amount as per agreement for acquiring a special right for using other's property. This amount which is paid as a consideration for the use of special rights is called royalty