I am confuswd in expenses charged against profit and appropiation of profit...... Rent paid to partner in under the capacity of landlord so it is charged against profit...so it is charged against profit and debited to p/l a/c.....i am ok with it......similarly interest paid on partners loan is under the capacity of lender and again intetest is devited to p and l account.....again i am ok with it........
But salary/ remuneration / commission payable to partners should also be payable under the capacity of employee not under the capacity of owner......if the work perform by partner is done by employee than salary is payable to him in case of loss also.....so my opinion is that salary must be payable under the capacity of employee and it should be charged against profit not appropiation of profit
CAclubindia
