Calculation of book profit in partnership firm

2613 views 2 replies

Whether 'interest' realised from Partners on their borrowing from Firm forms part of 'business income' considered for calculation of Book Profit for allowing partner's salary?

Replies (2)

I think Interest earned from partners should be income from other sources. it should not be considered whilke calculating Remuneration.

It depends on the nature of business run by partnership firm  if firm is doing lending business than only that interest realized from partners can be a business income and considered for computing book profit other wise that interest will be a income from other source and would not consider for book profit.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register