Accounts
This query is : Resolved
CA Siva Kumar Reddy
(Querist)
17 June 2018
Is Profit of Partnership Firm to be distributed in the current year or in the Next Year?
Is the Profit of Firm is to be added to the capital of Current year? or distributed in the next financial year so that the capital increase.
Is the Profit of Firm is to be added to the capital of Current year? or distributed in the next financial year so that the capital increase.
Ashiwini Ballodia
(Expert)
17 June 2018
profit of partnership firm is to be apportioned in profit sharing ratio in the same year when the profit was earned i.e. is to be added to capital account
It is not necessary to transfer the profit to partners bank account
CA Siva Kumar Reddy
(Querist)
18 June 2018
So the Closing Balance of capital after adding the profit will carried over to next year as opening Balance?
Ashiwini Ballodia
(Expert)
18 June 2018
Yes, you are correct
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