Mohd. Hammad (CA Article ) (103 Points)
12 July 2011Dear 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??
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 12 July 2011
only working partners are eligible for salary. pofit sharing ratio does not play role for partners remuneration. in case the partnership deed is silent about that you may share the remuneration equally
CAclubindia
