I've client with status 'Partnership Firm' & with profession 'Civil construction', whereas the firm started in FY 2009-10(may). As per partnership deed, initial capital is 17.50k each (2 partner with 50:50). In very first year they have earned profit of rs.1.60 lakhs (np before remuneration & interest on cap). now as per deed, i've calculate the remuneration as bellow
on first 75K 90% rs.67500
on next 75K 60% rs.45000
on bal of 10K 40% rs.4000
total 116500 / 2 so, 58250 x 2 is it correct? even how to calculate the interest on captial?
thanks in advance
CAclubindia
