Is gross profit as per bonus act similar to general gross profit calculated as per P& L a/c
Karuna Sethi (CA) (838 Points)
25 February 2009Is gross profit as per bonus act similar to general gross profit calculated as per P& L a/c
No....First Calculate Net Profit as per P&L A/c...Then make Schedule II Adjustments then gross Profit will be available for Bonus and make Sec 6 and Schedule III deductions. Then u will arrive at Available Surplus. Calculate Allocable Surplus.According to Schedule IV make neccessary Arrangements for 'Set on' and 'Set Off'.The allocable surplus so computed is distributed amongst the employees in proportion to salary or wages received by them during the relevant accounting year.
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