I hope this helps
1)Before charging the commission, the Net Profit is Rs. 2,200
The amount of commission = 2,200 x 10/100 = Rs 220
2)Commission payable = 10% on Net Profit (after charging the commission)
If Net Profit is Rs. 100, Commission payable = Rs. 10
Thus profit before charging the commission = 100 + 10 = 110
Of Rs. 110, Rs. 10 is commission payable and the balance Rs. 110- Rs. 10 = Rs. 100 is the profit, left after charging the commission.
3)Here Rs. 2.200 is equal to 110%
Therefore 10% = 2,200/110 x 10 =Rs. 200
On verification, the manager gets 10% commission on Net profit, after charging such amount:
Thus percentage of commission = 200/2,000 x 100 = 10%
Question : X and Y are partners with capitals of Rs 3,00,000 and 2,50,000, respectively. They are entitled to interest on capital @ 6% p.a. The Firm earned a profit of Rs 55,000 after charging interest on capital. If the manager is entitled to 10% of net profit before charging his commission, the manager's commission will be
Option 1: Rs 3,200
Option 2: Rs 5,500
Option 3: Rs 4,000
Option 4: Rs 8,800
Question : X and Y are partners with capitals of Rs 3,00,000 and 2,50,000, respectively. They are entitled to interest on capital @ 6% p.a. The Firm earned a profit of Rs 55,000 after charging interest on capital. If the manager is entitled to 10% of net profit after charging his commission, the manager's commission will be
Option 1: Rs 8,000
Option 2: Rs 8,800
Option 3: Rs 3,200
Option 4: Rs 4,000
Question : A manager gets a 5% commission on net profit after charging such a commission. Gross profit is Rs. 5,80,000, and indirect expenses other than the manager's commission are Rs. 1,60,000. The commission amount will be
Option 1: Rs. 21,000
Option 2: Rs. 20,000
Option 3: Rs. 13,000
Option 4: Rs. 22,000
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