Np ratio calulation in clause 32 of 3cd report

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2011 In case of PARTNERSHIP FIRM, how to calculate the NP Ratio in Clase 32 of 3CD Report????

Whether NP to be consider without deducting the Interest on partners Capital A/c & Remuneration to partners?

or after deducting it?

Please reply with suitable guidance note/rule.

Very thanks in advance

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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08 September 2011 It has to be calculated after deducting the remuneration and interest to partners. No guidance note is needed for the same.

As both are allowabe expenditure so there is no need to get confused.

Mihir Doshi

Mihir Doshi (Expert)
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08 September 2011 yes.....no need for any guidance note...agreed with the expert.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 September 2011 Yes I also agree with the experts the NP ratio is to be calculated on the basis of NET profit and what is net profit is the profit after charging all expenses and provisions against the Profit.

Since partners remuneration and interest is charge against profit it is to be deducted for arriving at the net profit and the same is to be taken cor calculation of NP ratios.