16 October 2010
IF THE PROVISIONAL BALANCE SHEETS OF A PARTNERSHIP FIRM IS SHOWING TOO MUCH PROFITABILITY, THEN SUGGEST FIVE METHODS FOR REDUCING THE PROFIT FIGURES OF THAT FIRM.
16 October 2010
Maximum remuneration as per Income tax act is as follows:- In case of loss : Rs.1,50,000 On first Rs.3,00,000 of book profit : 90% of book profits On balance book profit : 60% of book profits
Interest on capital upto 12% is allowed as per Income tax act.
Debit P&L a/c with the remuneration and interest on capital, profit will get reduced.
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