HELP NEEDED IN COMPANY ACCOUNTS

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.

Replies (2)


TABLE; NET PROFIT AS DERIVED FOR MANAGERIAL REMUNERATION;

 

 

Gross Profit as disclosed by P/L A/c                                          

 

 

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Add; Subsidy Received                                                             

 

 

                           *******

Deduct;

 

 

 

a) salaries & wages

                                        *******

 

b)directors’ remuneration or fees

 

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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

 

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e)any tax on business profits imposed for special reasons or in special circumstances and notified

by the Central Government in this behalf

 

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f)interest on debentures issued

 

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g)interest on mortgages executed by the company and on loans and advances secured by a charge

in its fixed or floating assets.

 

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h)interest on unsecured loans & advances

 

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i)expenses on repairs,whether to immovable property or to movable property ,provided the repairs are not  of a capital nature.

 

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j)donations to charitable funds

 

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l)losses of previous yrs.

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m) any compensation or damages to be paid in virtue of any legal liability including a liability arising from

a breach of a contract.

 

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n)any sum paid by way of insurance against the risk of meeting any liability such as is referred to in (m)

 

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o)debts considered bad and written off or adjusted  during the year of account.

 

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p)amount paid as cess u/s 441-A

 

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                             (-)  *******

 

 

 

 

NET PROFIT AS DERIVED FOR

MANAGERIAL REMUNERATION

                                        *******

 

 

 

Thanks sanjoy for ur kind help.........

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