Salary to partner

If profit of the firm is less than Rs. 100000. Lets say it is Rs. 60000. Then salary to working partner will be maximum of followin two amounts:

1. 90% of Rs. 60000 = Rs.54000

2. Rs.150000.

Originally posted by : Devendra
	if the profit of the p'ship firm is less than Rs. 100000, then what will be the criteria for calculating the salary payment to the working partner?

It will be calculated as follows :

Lower of the two -

1.Sum Actually paid as salary.

2. Higher of the two -

(i) 150,000

(ii) If profits are upto 300,000 then 90 % of profits.

In your case, if we assume salary as Rs.60,000 ,Then according to above criteria,salary allowed will be actually paid, ie, Rs.60,000.

In your case, simply distribute salary upto a maximum of Rs. 1,50,000.00