Appropriation of profit in partnership firm

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Neelam Soneja

Neelam Soneja (Querist)
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31 May 2011 Pls help me , tell me hw to app. profit to partners in partnership firm.

U S Sharma

U S Sharma (Expert)
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31 May 2011 net profit + incometax of firm

divide the amount in the ratio of partnership and send the same to their respective capital account after deducting the firms share of tax

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 May 2011 If income tax or provision for income tax is not debited in the profit and loss account, then net profit should be divided in the profit sharing ratio mentioned in the partnership deed and that amount is to be t/d either to respective capital or current a/c of the partner's.

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Neelam Soneja

Neelam Soneja (Querist)
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31 May 2011 there r some provisions under IT Act, like in A.Y 2010-11, 90% of 300000 r 150000 which ever is higher n from remaining amt 60% is to b allocated to partners as salary n remaining as profit share,

wht r dat provision for salary as per current budget for giving salary to partners for ass yr. 2011-12??

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 May 2011 Salary to working partners are to be provided in the accounts in the assessment year 2011-12 also as per the slab given in the query if the partnership deed also contain such a clause. The remaining is the net profit of the firm which has to be apportioned among the partners in the profit sharing ratio specified in the partnership deed.

Neelam Soneja

Neelam Soneja (Querist)
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01 June 2011 thankx for help..

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