INTERSET ON CAPITAL

1252 views 1 replies

HI ALL,


can anybody tell me howz to calculate interest on capital of partners in a partnership firm.i hve the following problem.


our partner is getting remuneration (33,000)and when it is credited to partner capital a/c. is it on 31-03-07 or on monthly basis?(ie. 3000 pm)


plz tell me


thnkx

Replies (1)
It all depends upon the language in the partnership deed ..........if it provides for year end calculations based on profits .....then remuneratiion will be credited at the year end and cannot be credited monthly

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