Calculate Partner Remuneration

Hi,
Welcome
Here we are learn to how to calculate the partner remuneration

First you learn what is partner remuneration

Here describe the remuneration is a one time of partnership firm paid a salary[ as per partner ship deed rules and regulations] for partner.

Partner remuneration is journal entry is.

Accounting journal entry

Partner remuneration is debited
Partner a/C is credited

Illustrated

Like your net profit is Rs.  500000/- after debited partner interest

So rules is. Net profit 90% or 300000/- is more than hire calculate.

After...  Remaining amount is 60%

Like
For example
500000/- net profit.

500000-300000=200000

300000x90%= 270000
200000x60%=120000

Total remuneration is 390000/-

As per rules changes...  Please visit your legal advisor or leave a post we are try to reply for your question solve it..