Before and after profit by partnership firm

Others 130 views 5 replies

Dear Experts.,

FY 2014-15 One of the Partnership Firms Profit as per Books of Accounts after paid remuneration (400,000) in Tally Rs. 89580.

At the time of filing ITR Auditor Disallow/Less the remuneration from Rs. 400,000 to Rs. 389,443 as per his calculation. (Actual Remuneration Rs. 400000 - Allowable Remuneration Rs. 389443 = Balance Rs. 10557).

Also paid the income Tax as Profit Rs. 100137 (89580 + 10557)... But, In my books (Tally) shown the profit Rs. 89580 and I transferred the amount of Rs. 89580 to Two partners Accounts as 50/50...

My Questions are.,

1. The above said adjustments Rs. 89580 are correct or not...? or

2. Can I reverse the excess amount Rs. 10557 from remuneration to PandL account...?

3. If yes., I will show the profit Rs. 100137 in Tally and Transfer the amount equally to Capital Account in FY 2015-16...?

4. How to I manage the Opening balance of Capital Account in FY 2015-16 as 89580 or 100137...?

 

Please give your solutions. It's urgent for filings...

Thanks in Advance

Replies (5)
1# Adjustment is correct as the Income Tax Act.
2# You can reverse the same. If you will make reversal, then it amounts to keeping Books of Account as per the Income Tax Act.
#3 Yes, you can do the same
#4 if you will make reversal, then opening balance will Automatically be adjusted and no further Adjustment will be needed.

Sir.,

One more query in a partnership firm... Also the above said firm. They are deal Mfg & Services trade Name "SEAL ENGINEERING" started on 02/12/2011 with Two Partners... Also one of the Partner run PROPRIETORSHIP businesss the same name on or before starting Partnership firm. Now he is closed the Proprietory firm on 06/08/2012...

The Partnership firm give service to One of the customer. The Customer deduct & Deposit TDS mistakenly in Proprietorship Firm name and his PAN till the Date. Also the Payment received after less the amount. I found the Details in Last month. The customer will not revise the TDS returns... In this situation 

What can I do...?

How to account the balance amount for deducting amount?

 

Please give your valuable Solutions...


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