Can anyone please help me with which profit should be shown in audit report of a partnership firm. a. Profit after interest and remuneration. OR b. Profit before interest and remuneration.
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Quick Summary
This discussion clarifies which profit figure should be presented in an audit report for a partnership firm. It advises that 'profit after interest and remuneration' is generally appropriate, especially considering that company audit rules don't directly apply to partnerships. The recommendation is to use the book profit as per tax computation, referencing eligible remuneration under income tax rules.