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HELP NEEDED IN COMPANY ACCOUNTS

Simranjeet Singh (Proprietor at S Simranjeet & Associates ) (4396 Points)

16 April 2010

Can anyone tell me in brief how net profit is determined for calculation of managerial remuneration in case of Final accounts of joint stock companies.

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sanjoy saha (student) (126 Points)
Replied 22 April 2010

TABLE; NET PROFIT AS DERIVED FOR MANAGERIAL REMUNERATION;

Gross Profit as disclosed by P/L A/c		*******
Add; Subsidy Received		*******
Deduct;
a) salaries & wages	*******
b)directors’ remuneration or fees	*******
c)bonus or commission to staff	*******
d)any tax notified by Central Government as being in nature of a tax on excess or abnormal profits	*******
e)any tax on business profits imposed for special reasons or in special circumstances and notified by the Central Government in this behalf	*******
f)interest on debentures issued	*******
g)interest on mortgages executed by the company and on loans and advances secured by a charge in its fixed or floating assets.	*******
h)interest on unsecured loans & advances	*******
i)expenses on repairs,whether to immovable property or to movable property ,provided the repairs are not of a capital nature.	*******
j)donations to charitable funds	*******
l)losses of previous yrs.	*******
m) any compensation or damages to be paid in virtue of any legal liability including a liability arising from a breach of a contract.	*******
n)any sum paid by way of insurance against the risk of meeting any liability such as is referred to in (m)	*******
o)debts considered bad and written off or adjusted during the year of account.	*******
p)amount paid as cess u/s 441-A	*******	(-) *******

	NET PROFIT AS DERIVED FOR MANAGERIAL REMUNERATION	*******