Before and after profit by partnership firm

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S ELAVARASI

ACCOUNTANT

1542 Points Posted on 04 January 2018

Dear Experts.,

FY 2014-15 One of the Partnership Firms Profit as per Books of Accounts after paid remuneration (400,000) in Tally Rs. 89580.

At the time of filing ITR Auditor Disallow/Less the remuneration from Rs. 400,000 to Rs. 389,443 as per his calculation. (Actual Remuneration Rs. 400000 - Allowable Remuneration Rs. 389443 = Balance Rs. 10557).

Also paid the income Tax as Profit Rs. 100137 (89580 + 10557)... But, In my books (Tally) shown the profit Rs. 89580 and I transferred the amount of Rs. 89580 to Two partners Accounts as 50/50...

My Questions are.,

1. The above said adjustments Rs. 89580 are correct or not...? or

2. Can I reverse the excess amount Rs. 10557 from remuneration to PandL account...?

3. If yes., I will show the profit Rs. 100137 in Tally and Transfer the amount equally to Capital Account in FY 2015-16...?

4. How to I manage the Opening balance of Capital Account in FY 2015-16 as 89580 or 100137...?

Please give your solutions. It's urgent for filings...

Thanks in Advance

Replies (5)

Rishi Mehta

Ur friend

752 Points Posted on 05 January 2018

1# Adjustment is correct as the Income Tax Act.

Rishi Mehta

Ur friend

752 Points Posted on 05 January 2018

2# You can reverse the same. If you will make reversal, then it amounts to keeping Books of Account as per the Income Tax Act.

Rishi Mehta

Ur friend

752 Points Posted on 05 January 2018

#3 Yes, you can do the same

Rishi Mehta

Ur friend

752 Points Posted on 05 January 2018

#4 if you will make reversal, then opening balance will Automatically be adjusted and no further Adjustment will be needed.

S ELAVARASI

ACCOUNTANT

1542 Points Posted on 05 January 2018

Sir.,

One more query in a partnership firm... Also the above said firm. They are deal Mfg & Services trade Name "SEAL ENGINEERING" started on 02/12/2011 with Two Partners... Also one of the Partner run PROPRIETORSHIP businesss the same name on or before starting Partnership firm. Now he is closed the Proprietory firm on 06/08/2012...

The Partnership firm give service to One of the customer. The Customer deduct & Deposit TDS mistakenly in Proprietorship Firm name and his PAN till the Date. Also the Payment received after less the amount. I found the Details in Last month. The customer will not revise the TDS returns... In this situation

What can I do...?

How to account the balance amount for deducting amount?

Please give your valuable Solutions...