Here is my question:

Paid royalties due on first weeks sales ( $800 sales of first week)

Is this correct?

Royalities divideds $40
Cash $40


THANKS!!

Assuming that on $800 of sales you must pay $40 in royalties

Dr. Royalties Expense 40
Cr. Cash 40

You called it royalties dividends….that is fine, you can call the account whatever you want…as long as you know the account is an expense account.

Thank you very much for your quick response!!

Hi!

I am due to pay my 1st installment of royalty by April, how will I record it?