A firm paid managerial remuneration to its partners. The same was in accordance permission. Partners are also entitled to interest on capital @ 11% as per partnership deed. Total interest paid during the year is ₹ 2,00,000. The book profit before interest on capital and remuneration is ₹ 25,00,000 allowable managerial remuneration is:
A. ₹ 14,70,000
B. ₹ 12,50,000
C. ₹ 10,00,000
D. ₹ 23,00,000
Answer:A
A firm paid managerial remuneration to its partners. The same was in accordance permission. Partners are also entitled to interest on capital @ 11% as per partnership deed. Total interest paid during the year is ₹ 2,00,000. The book profit before interest on capital and remuneration is ₹ 25,00,000 allowable managerial remuneration is:
A. ₹ 14,70,000 B. ₹ 12,50,000 C. ₹ 10,00,000 D. ₹ 23,00,000