Partnership

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2012 Dear expert,
I want to know that, income tax on firm's income is to be debited in P&L appropriation a/c or from partners capital a/c divided in there partnership ratio.
Please advise me.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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02 April 2012 you can do it both ways. you can also debit to P/L appropriation a/c and then transfer remaining to partners capital or directly debit to partners capital a/c.

Prashant Agrawal

Prashant Agrawal (Expert)
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02 April 2012 The profit is distributed among partners after appropriating income tax from profit before tax. Rest of the profit is available for partners in their sharing ratio as per deed

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