Distribution of profit
This query is : Resolved
04 March 2013
In case partners of the firm are taking the profit earned in the middle of the year, what will be the entry?
04 March 2013
Just make it as drawings i.e debit to partners account and credit to cash/bank or any other (if such drawing is in kind) at the end of the year then transfer the profit to all its partners according to their sharing ratio by debiting profit & loss account and crediting partners account. This adjustment you can make at the middle of the year(i.e at the time of drawings made) but when you make this entry actual profit or loss decrease or becomes Zero so at the end of the year profit & loss account shows only the profit or loss for the remaining period after the middle distribution so it not seems actual profit for the year and may not be proper. So my suggestion is make it as drawings.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- Multiple trade mark
- Value of property in capital gain
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- LC charges in relation to Asset purchased should be Capitalised ?
- Regarding TDS Applicability For Director Remuneration
- Transporter Declaration form
- Copyright software
- Taxation on Swing Trading Income (No Other Income)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
