queries Regarding Partnership firm accounting

This query is : Resolved

akbar (Querist)
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21 June 2010 Sir,

Kindly suggest solution on the following queries related to Partnership firm accounting:-

1)Whole Share of profit allow to distribute in partners.
2) if not the as per rule how much retained and how

3) share of profit from partnerhisp is exempt in the hand of partners for income tax purpose

3) how much interest to be crdited on partners capital it is allow to credit higher than mentioned in partnership deed.

if have any valuable suggestion other than above for making a better management of accounting of parntership firm.

Akbar Saudagar

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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21 June 2010 1) yes in ratios as per partenership deed, if deed is silent then equal.
2) In firm, there is no rule for retained the profit inplace of distribution to partenrs.
3) Yes, it is exempt in hand of partners because firm is already paying tax on it.
4) No, Interest can't be credited higher than which is provided in deed.