Question : K and P are partners in a firm which earned a profit of Rs.1,20,000 for the year. K is entitled to a commission of 20% of net profit after charging such commission. The amount of commission K will receive is:
Option 1: Rs.24,000
Option 2: Rs.20,000
Option 3: Rs.22,000
Option 4: None of these
Answer (1)
17th Jan, 2024
Correct Answer: Rs.20,000
Solution :
Partners' commission after charging such commission = Profit X Commission/(100 + % commission)
K's commission = Rs.1,20,000 X 20/(100 + 20) = Rs.20,000.
Hence, the correct option is 2.
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