Partner's Remuneration

Mohd. Hammad (CA Article ) (103 Points)

12 July 2011  

Dear All,

My Query is given below:

A firm XYZ having 3 partners X Y Z, profit sharing ratio 2:1:1

Y & Z are working partners

Allowable salary to working partners computed on book profits 1600000/-

as per above, What is the maximum amount can  be given to working partners as Salary? it has any relation with profit sharing ratio??