Bonus act - calculation of allocable surplus

As per schedule III of the act, the company needs to deduct 8.5% of the paid-up share capital from the gross profit calculation. But, what if company having 4 different units and different location and having its own profit and loss account. And there is only one balance sheet (Consolidated) which consists paid up share capital. How should I allocate paid up share capital in those units (i.e on turnover basis or o the basis of employee expenses)
Replies (2)

In my opinion, Allocable surplus is calculated on company basis, not on unit basis

 

Hello sir,

 

Appreciate your answer.

 

However, there are 4 units in my case where 3 units are new and hence, going thrrough losses. Now employees and headd of the 1 unit which is earning profits are of opinon that whay should we accept lower binus due to losses of new units.

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