Hi,
Can anyone explain with example how to calculate remuneration to partners if firm incurs loss. If there are 3 partners and loss is INR 500000/-
Thanks
CA Raj Doshi
(Practising CA)
(8723 Points)
Replied 25 February 2023
CA Mohit Sharma
(Chartered Accountant)
(119 Points)
Replied 25 February 2023
If the partners have capital contributions of INR 100,000, INR 200,000, and INR 300,000 respectively, the loss would be allocated as follows:
Partner A: (INR 100,000 / INR 600,000) x INR 150,000 = INR 25,000
Partner B: (INR 200,000 / INR 600,000) x INR 150,000 = INR 50,000
Partner C: (INR 300,000 / INR 600,000) x INR 150,000 = INR 75,000
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