Journal Entries For Royalty Payments

Posted by Ana Orwel on Monday, May 11, 2009

Journal entry is the first entry for every financial transactions occurring in a business firm. The entries that are made in the journal record all the transactions in a chronological order and maintain the details of the transactions along with the amounts that are to credited or debited.

Royalty is treated as an expense, so the journal entries for royalty payments are as follows:
Bank A/c D XXX
To Royalty A/c C XXX

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