3. What is the liability of partners in a partnership firm? Limited Unlimited Limited to the capital of business No Liability Answer:B) Unlimited Explanation: In a partnership firm, every one of the accomplices of the business has a limitless obligation. Every one of the obligations and liabil...
2004-05 without deducting interest and salary to partners and as an AOP up to A.Y. 2003-04. Partners� assessments 1. Once tax is paid by firm , no tax will be payable by the partners on share of income from the firm . 2. Amount of Interest and/or remuneration etc. received by ...
The concept of salaried partners has become an established fact and salary to partners is treated as expenditure for tax purposes. One of the important results of this development has been the role of the partnership firm as an employer of its partners, something in the nature of a separate ...
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The Salary Account is debited and the capital or Current Account is credited with the amount of salary. Commission to Partners: ADVERTISEMENTS: Under the partnership law all partners are supposed to devote their time to the affairs of the firm but in practice many partners may not devote ...
Individuals who work for organizations may eventually be offered a partnership based on sustained high performance. Partnership converts the employee into an equity stakeholder who will share in the profits and losses of the organ...
True or False: The salaries paid to partners is shown as an expense on the income statement while the salary taken by a sole proprietor is debited to a drawing account. If the share of losses on the realization of the sale of non-cash a...
A.Nopartnerisentitledtoremunerationsuchassalaryforactinginthepartnershipbusiness.B.Thepartnershipagreementmaybevariedwiththeconsentofallthepartners.C.Partnersshareprofitsintheratiooftheamountsofcapitalthattheyoriginallycontributedtothefirm.D.Nointerestispaidoncapital.Lectureexample2SectionTopicSummary1Standardpartnership...
Partners and sole proprietors do not have to pay this type of insurance tax while the corporation's shareholder-employee must pay this tax which is based on salary. Currently, this tax is figured by calculating 6.2 percent based on the initial $7,000 received of income. The maximum is $...
The partners in an LLP may also have a number of junior partners in the firm who work for them in the hopes of someday making full partner. These junior partners are paid a salary and often have no stake or liability in the partnership. The important point is that they are designated p...