Ch11: Partnerships Flashcards by Mohammad Hamza Matin | Brainscape

Q

Formula to calculate Profit Sharing Ratio (PSR).

A

PSR = Net Profit of Partnership +
Disallowable Expenses -
Income Taxed Elsewhere -
Capital Allowances

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Q

How are losses relieved for Partnerships?

A

C/F against future trading profits.
Set off against general income of the CY and C/B year.
RESTRICTION ON LOSS = HIGHER OF:
(1) £50,000
(2) 25% of Total Income

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Q

A

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