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partnership firm

27 August 2018

the partnership firm remunaration interest on capital is debited in profit and loss ac the partners make a individual income tax file in that. remunaration is profit and loss ac credited. ,,,,, interest on capital is credited or not ,,,,

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3 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 August 2018

Yes.... That's a income. So, It's will be credited.

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Sanket (!..Live to Give..!) (16427 Points)
Replied 27 August 2018

Interest is payable to partnersand hence, the partner's capital account is credited with the amount of interest.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 August 2018

In Firm's account it is booked under PandL and the amount ll be transferred to capital account or Partner can Draw the Amount also remuneration...

Also partners individual account it ll be treat as a income from Firm...