in case of inadequate profits which of the following has to be provided first:
salary
interest on capital??
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Inadequate profits
Replies (1)
You have to provide for both if it's your liabilities/expenses, irrespective of profit, there will be loss after providing both in books of account
If specifically for firm, interest to Partners is provided first as per Partnership agreement and there after provision for remuneration is made as per IT act, 1961 or as otherwise provided in partnership agreement.
If specifically for firm, interest to Partners is provided first as per Partnership agreement and there after provision for remuneration is made as per IT act, 1961 or as otherwise provided in partnership agreement.
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