Calculation of partner's remuneration in case of loss

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CA Devesh Thakur (Querist)
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10 July 2012 I am having one client who's net loss for the last year is Rs. 50,000/- exclusive of Interest on capital i.e Rs. 12500/-.

I need to know what is the best way to pay off the interest on capital?? Should they capitalized the interest amount to capital account or firm should pay it off in cash??

Is firm is in condition to pay remuneration??
Yes if how much it can pay the remuneration to the partners

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 July 2012 The firm can pay a maximum remuneration of Rs. 1.5 lakhs.

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C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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11 July 2012 the firm can pay total remuneration to all partner up to Rs 1.5 lacs.

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CA Devesh Thakur

CA Devesh Thakur (Querist)
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13 July 2012 thanks siddhartha and Mr. Anshul, can u guys tell the exact way to calculate Book profit at year end.

CA Devesh Thakur

CA Devesh Thakur (Querist)
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13 July 2012 Is it better to pay interest on partner's capital in cash or
to capitalized the amount in capital account in case of loss.

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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14 July 2012 it's depend on partnership deed .

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